WGU C213 Q&A
WGU C213
Study online at https://quizlet.com/_76wjb7
1. Accounting A system of providing "quantita-
tive information, primarily financial
in nature, about economic entities
that is intended to be useful in
making economic decisions."
2. Balance Sheet Document which reports the re-
sources of a company (the assets),
the company's obligations (the li-
abilities), and the owners' equity,
which represents how much money
has been invested in the company
by its owners.
3. American Institute of Certified Public Accoun- The professional organization of
tants (AICPA) certified public accountants in the
United States.
4. Bookkeeping The preservation of a systematic,
quantitative record of an activity.
5. Certified Public Accountant A person who has taken a minimum
number of college-level accounting
classes, has passed the dreaded
CPA exam, and has met other re-
quirements set by his or her state.
6. Financial Accounting The name given to accounting in-
formation provided for and used by
external users.
7. Financial Accounting Standards Board (FASB)
, WGU C213 Q&A
WGU C213
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Private, non-profit body that sets
accounting standards in the United
States.
8. Financial Statements The three primary financial in-
formation documents: the bal-
ance sheet, income statement, and
statement of cash flows.
9. Income Statement This document reports the amount
of net income earned by a com-
pany during a period, with annu-
al and quarterly income statements
being the most common.
10. Internal Revenue Service (IRS) The government agency responsi-
ble for tax collection and tax law
enforcement.
11. International Accounting Standards Board An independent, international
(IASB) body formed to develop worldwide
accounting standards.
12. International Financial Reporting Standards The accounting standards pro-
(IFRS) duced by the IASB.
13. Managerial Accounting The name given to accounting sys-
tems designed for internal users.
14. Public Company Accounting Oversight Board A private, non-profit organization
(PCAOB) that effectively serves as an arm of
the SEC in registering, inspecting,
, WGU C213 Q&A
WGU C213
Study online at https://quizlet.com/_76wjb7
and disciplining the auditors of all
publicly traded companies.
15. Statement of Cash Flows This document reports the amount
of cash collected and paid out by
a company in the following three
types of activities: operating, in-
vesting, and financing.
16. Accounting Equation Assets = Liabilities + Owners' Equity
17. Accumulated Other Comprehensive Income The source of these increased as-
sets
18. Assets Assets are the firm's economic re-
sources, formally defined as "prob-
able future economic benefits ob-
tained or controlled by a particular
entity as a result of past transac-
tions or events
19. What does accounting focus on? The impact a business's activities
have on its overall financial perfo-
rmanc
20. Which report summarizes cash collections and Statement of cash flow
cash expenditures from operating, investing,
and financing activities over a period of time
21. Which users would have a primary concern with Employees
an organization's ability to provide healthcare
benefits
22.
, WGU C213 Q&A
WGU C213
Study online at https://quizlet.com/_76wjb7
Which benefit does a corporation gain by follo- An increase in its comparability to
wing Generally Accepted Accounting Principles other companies
(GAAP)
23. Which body regulates a certified public accoun- The Public Company Accounting
ting firm's audit practices when the firm is auditi Oversight Board (PCAOB)
ng a large publicly traded compa
24. What has had the most significant impact on a- Information technology
ccounting practices
25. What two items of information are revealed on Ownership, Debt
the balance sheet?
26. Which term is defined as the residual interest in Owners' equity
the net assets of a company
27. A corporation has total liabilities of $300 million, $350 million
total owners' equity of $100 million, and current
assets of $50 million.
What is the value of the firm's long-term assets
28. Which situation should result in revenue recog- In 2014, a company provides ser-
nition on the income statement for the year end- vices to a customer for which cash
ing 12/31/14 if the firm is using accrual-basis will be collected the next year
accounting (2015).
29. Which category on the statement of cash flows Cash flows from financing activiti
summarizes cash receipts and payments to
owners and creditors of the company?
30. Where would an investor find a summary of a In the notes to financial statement
company's significant accounting policie
WGU C213
Study online at https://quizlet.com/_76wjb7
1. Accounting A system of providing "quantita-
tive information, primarily financial
in nature, about economic entities
that is intended to be useful in
making economic decisions."
2. Balance Sheet Document which reports the re-
sources of a company (the assets),
the company's obligations (the li-
abilities), and the owners' equity,
which represents how much money
has been invested in the company
by its owners.
3. American Institute of Certified Public Accoun- The professional organization of
tants (AICPA) certified public accountants in the
United States.
4. Bookkeeping The preservation of a systematic,
quantitative record of an activity.
5. Certified Public Accountant A person who has taken a minimum
number of college-level accounting
classes, has passed the dreaded
CPA exam, and has met other re-
quirements set by his or her state.
6. Financial Accounting The name given to accounting in-
formation provided for and used by
external users.
7. Financial Accounting Standards Board (FASB)
, WGU C213 Q&A
WGU C213
Study online at https://quizlet.com/_76wjb7
Private, non-profit body that sets
accounting standards in the United
States.
8. Financial Statements The three primary financial in-
formation documents: the bal-
ance sheet, income statement, and
statement of cash flows.
9. Income Statement This document reports the amount
of net income earned by a com-
pany during a period, with annu-
al and quarterly income statements
being the most common.
10. Internal Revenue Service (IRS) The government agency responsi-
ble for tax collection and tax law
enforcement.
11. International Accounting Standards Board An independent, international
(IASB) body formed to develop worldwide
accounting standards.
12. International Financial Reporting Standards The accounting standards pro-
(IFRS) duced by the IASB.
13. Managerial Accounting The name given to accounting sys-
tems designed for internal users.
14. Public Company Accounting Oversight Board A private, non-profit organization
(PCAOB) that effectively serves as an arm of
the SEC in registering, inspecting,
, WGU C213 Q&A
WGU C213
Study online at https://quizlet.com/_76wjb7
and disciplining the auditors of all
publicly traded companies.
15. Statement of Cash Flows This document reports the amount
of cash collected and paid out by
a company in the following three
types of activities: operating, in-
vesting, and financing.
16. Accounting Equation Assets = Liabilities + Owners' Equity
17. Accumulated Other Comprehensive Income The source of these increased as-
sets
18. Assets Assets are the firm's economic re-
sources, formally defined as "prob-
able future economic benefits ob-
tained or controlled by a particular
entity as a result of past transac-
tions or events
19. What does accounting focus on? The impact a business's activities
have on its overall financial perfo-
rmanc
20. Which report summarizes cash collections and Statement of cash flow
cash expenditures from operating, investing,
and financing activities over a period of time
21. Which users would have a primary concern with Employees
an organization's ability to provide healthcare
benefits
22.
, WGU C213 Q&A
WGU C213
Study online at https://quizlet.com/_76wjb7
Which benefit does a corporation gain by follo- An increase in its comparability to
wing Generally Accepted Accounting Principles other companies
(GAAP)
23. Which body regulates a certified public accoun- The Public Company Accounting
ting firm's audit practices when the firm is auditi Oversight Board (PCAOB)
ng a large publicly traded compa
24. What has had the most significant impact on a- Information technology
ccounting practices
25. What two items of information are revealed on Ownership, Debt
the balance sheet?
26. Which term is defined as the residual interest in Owners' equity
the net assets of a company
27. A corporation has total liabilities of $300 million, $350 million
total owners' equity of $100 million, and current
assets of $50 million.
What is the value of the firm's long-term assets
28. Which situation should result in revenue recog- In 2014, a company provides ser-
nition on the income statement for the year end- vices to a customer for which cash
ing 12/31/14 if the firm is using accrual-basis will be collected the next year
accounting (2015).
29. Which category on the statement of cash flows Cash flows from financing activiti
summarizes cash receipts and payments to
owners and creditors of the company?
30. Where would an investor find a summary of a In the notes to financial statement
company's significant accounting policie
