Western Governors University C 213
Accounting for Decision Makers -
C213 EXAM QUESTIONS AND
ANSWERS (100% CORRECT) |
LATEST UPDATE 2026/2027 |
GRADED A+ | ASSURED PASS.
Terms in this set (222)
Accounting A system of providing "quantitative information, primarily
financial in nature, about economic entities that is
intended to be useful in making economic decisions."
American Institute of Certified Public The professional organization of certified public
Accountants (AICPA) accountants in the United States.
Balance Sheet Document which reports the resources of a company
(the assets), the company's obligations (the liabilities),
and the owners' equity, which represents how much
money has been invested in the company by its
owners.
Bookkeeping The preservation of a systematic, quantitative record of
an activity.
,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
requirements set by his or her state.
Financial Accounting The name given to accounting information provided
for and used by external users.
Financial Accounting Standards Governmental body that sets accounting standards
Board (FASB) in the United States.
Financial Statements The three primary financial information documents:
the balance sheet, income statement, and statement
of cash flows.
Income Statement This document reports the amount of net income
earned by a company during a period, with annual
and quarterly income statements being the most
common.
Internal Revenue Service (IRS) The government agency responsible for tax collection
and tax law enforcement.
International Accounting Standards An independent, international body formed to
Board (IASB) develop worldwide accounting standards.
International Financial Reporting The accounting standards produced by the IASB.
Standards (IFRS)
Managerial Accounting The name given to accounting systems designed for
internal users.
Public Company Accounting A private, non-profit organization that effectively serves
Oversight Board (PCAOB) as an arm of the SEC in registering, inspecting, and
disciplining the auditors of all publicly traded
companies.
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, investing, and financing
Accounting Equation Assets = Liabilities + Owners' Equity
Accumulated Other Comprehensive The source of these increased assets
Income
Assets Assets are the firm's economic resources, formally
defined as
"probable future economic benefits obtained or
controlled by a particular entity as a result of past
transactions or events
Balance Sheet A statement of financial position shows the financial
resources the company owns or controls and the
claims on those
resources
, Book Value The book value of an asset is the asset's cost minus the
asset's accumulated depreciation.
Comparability Tnformation that becomes much more useful when it
can be related to a benchmark or standard
Conservatism a pervasive factor in accounting, can be summarized
as follows: When in doubt, recognize all losses but
don't recognize any gains.
Consistency The consistency principle states that, once you
adopt an accounting principle or method,
continue to follow it consistently in future
accounting periods.
Disclosure
Earnings Per Share (EPS) EPS tells the owner of one share of stock what he or
she really wants to know
Entity Concept The idea that personal financial activity is kept
separate from business financial activity
Expenses The amount of assets consumed from the performance
of business operations and thus are the opposite of
revenues
External Audit audit conducted by external (independent) qualified
accountant(s)
Financing Activities Those activities whereby cash is obtained from, or
repaid to, owners and creditors
Gains Refers to money made on activities outside the
normal business of a company
Going Concern Assumption allows the readers of financial statements to assume
that the company will continue on long enough to
carry out its objectives and commitments.
Historical Cost Convention An accounting technique that values an asset for balance
sheet purposes at the price paid for the asset at the
time of its acquisition
Income Statement A company's financial performance for a specified
period of time.
Investing Activities The purchase and sale of land, buildings, and
equipment. Investing activities also include buying
and selling stocks of other companies
Accounting for Decision Makers -
C213 EXAM QUESTIONS AND
ANSWERS (100% CORRECT) |
LATEST UPDATE 2026/2027 |
GRADED A+ | ASSURED PASS.
Terms in this set (222)
Accounting A system of providing "quantitative information, primarily
financial in nature, about economic entities that is
intended to be useful in making economic decisions."
American Institute of Certified Public The professional organization of certified public
Accountants (AICPA) accountants in the United States.
Balance Sheet Document which reports the resources of a company
(the assets), the company's obligations (the liabilities),
and the owners' equity, which represents how much
money has been invested in the company by its
owners.
Bookkeeping The preservation of a systematic, quantitative record of
an activity.
,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
requirements set by his or her state.
Financial Accounting The name given to accounting information provided
for and used by external users.
Financial Accounting Standards Governmental body that sets accounting standards
Board (FASB) in the United States.
Financial Statements The three primary financial information documents:
the balance sheet, income statement, and statement
of cash flows.
Income Statement This document reports the amount of net income
earned by a company during a period, with annual
and quarterly income statements being the most
common.
Internal Revenue Service (IRS) The government agency responsible for tax collection
and tax law enforcement.
International Accounting Standards An independent, international body formed to
Board (IASB) develop worldwide accounting standards.
International Financial Reporting The accounting standards produced by the IASB.
Standards (IFRS)
Managerial Accounting The name given to accounting systems designed for
internal users.
Public Company Accounting A private, non-profit organization that effectively serves
Oversight Board (PCAOB) as an arm of the SEC in registering, inspecting, and
disciplining the auditors of all publicly traded
companies.
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, investing, and financing
Accounting Equation Assets = Liabilities + Owners' Equity
Accumulated Other Comprehensive The source of these increased assets
Income
Assets Assets are the firm's economic resources, formally
defined as
"probable future economic benefits obtained or
controlled by a particular entity as a result of past
transactions or events
Balance Sheet A statement of financial position shows the financial
resources the company owns or controls and the
claims on those
resources
, Book Value The book value of an asset is the asset's cost minus the
asset's accumulated depreciation.
Comparability Tnformation that becomes much more useful when it
can be related to a benchmark or standard
Conservatism a pervasive factor in accounting, can be summarized
as follows: When in doubt, recognize all losses but
don't recognize any gains.
Consistency The consistency principle states that, once you
adopt an accounting principle or method,
continue to follow it consistently in future
accounting periods.
Disclosure
Earnings Per Share (EPS) EPS tells the owner of one share of stock what he or
she really wants to know
Entity Concept The idea that personal financial activity is kept
separate from business financial activity
Expenses The amount of assets consumed from the performance
of business operations and thus are the opposite of
revenues
External Audit audit conducted by external (independent) qualified
accountant(s)
Financing Activities Those activities whereby cash is obtained from, or
repaid to, owners and creditors
Gains Refers to money made on activities outside the
normal business of a company
Going Concern Assumption allows the readers of financial statements to assume
that the company will continue on long enough to
carry out its objectives and commitments.
Historical Cost Convention An accounting technique that values an asset for balance
sheet purposes at the price paid for the asset at the
time of its acquisition
Income Statement A company's financial performance for a specified
period of time.
Investing Activities The purchase and sale of land, buildings, and
equipment. Investing activities also include buying
and selling stocks of other companies
