WGU C213 Accounting Fundamentals
Exam Prep | Financial Accounting Notes &
Quiz Solutions
1 - The Nature and Purpose of
Accounting
Managerial Accounting: Inside the company
Financial Accounting: Outside the company
1) Accounting is the recording of the day-to-day financial activities of a company and the
organization of that information into summary reports used to evaluate the company's
financial status.
a. Accounting - A system of providing "quantitative information, primarily financial in
nature, about economic entities that is intended to be useful in making economic
decisions."
i. What: Numbers, Financial Dimension, Usefulness, Future decisions based on
past information.
ii. Why: In the event that we did not have record of important transactions
and information, it was create mass chaos.
b. Bookkeeping: Preservation of a systematic quantitative record of an activity
c. Section Quiz Answers:
i. Which of the following is true about the double-entry system of bookkeeping?
•
It was developed in the 1800s in Italy.
It was developed in the 1300s−1400s in Italy.
• It was developed in the 1300s−1400s in France.
• It was developed in the 1800s in the United States.
•
(100.0%)
Answer: It was developed in the 1300s−1400s in Italy.
Which of the following is NOT a key component of the definition of accounting?
ii.
•
Decision-oriented
• Financial
Qualitative
• Useful
•
(100.0%)
Answer: Qualitative
Businesses use accounting systems to
iii.
, • Analyze transactions
• Handle routine bookkeeping tasks
• Evaluate the performance and health of the business
All of these are correct
•
(100.0%)
Answer: All of these are correct
Which of the following is NOT typically true of accounting information?
iv.
Exam Prep | Financial Accounting Notes &
Quiz Solutions
1 - The Nature and Purpose of
Accounting
Managerial Accounting: Inside the company
Financial Accounting: Outside the company
1) Accounting is the recording of the day-to-day financial activities of a company and the
organization of that information into summary reports used to evaluate the company's
financial status.
a. Accounting - A system of providing "quantitative information, primarily financial in
nature, about economic entities that is intended to be useful in making economic
decisions."
i. What: Numbers, Financial Dimension, Usefulness, Future decisions based on
past information.
ii. Why: In the event that we did not have record of important transactions
and information, it was create mass chaos.
b. Bookkeeping: Preservation of a systematic quantitative record of an activity
c. Section Quiz Answers:
i. Which of the following is true about the double-entry system of bookkeeping?
•
It was developed in the 1800s in Italy.
It was developed in the 1300s−1400s in Italy.
• It was developed in the 1300s−1400s in France.
• It was developed in the 1800s in the United States.
•
(100.0%)
Answer: It was developed in the 1300s−1400s in Italy.
Which of the following is NOT a key component of the definition of accounting?
ii.
•
Decision-oriented
• Financial
Qualitative
• Useful
•
(100.0%)
Answer: Qualitative
Businesses use accounting systems to
iii.
, • Analyze transactions
• Handle routine bookkeeping tasks
• Evaluate the performance and health of the business
All of these are correct
•
(100.0%)
Answer: All of these are correct
Which of the following is NOT typically true of accounting information?
iv.
