Wgu_C213_Objective_Assessment_Accounting_For_Decision_Makers_2_Paper.pdf

WGU C213 OBJECTIVE ASSESSMENT
ACCOUNTING FOR DECISION MAKERS 2
PAPER

◉ Bookkeeping. Answer: the preservation of a systematic,
quantitative record of an activity


◉ accounting system. Answer: used by a business to handle routine
bookkeeping tasks and to structure the information so it can be used
to evaluate the performance and financial status of the business


◉ Accounting information. Answer: Info that is intended to be useful
in making decisions about the future.


◉ The balance sheet, the income statement, and the statement of
cashflows. Answer: What are the three primary financial
statements?


◉ External Users. Answer: Who is financial accounting information
primarily prepared for and used by?

, ◉ Managerial Accounting. Answer: the name given to accounting
systems designed for internal users


◉ Balance Sheet. Answer: Reports a company's assets, liabilities, and
owners' equity


◉ Income Statement. Answer: reports the amount of net income
earned by a company during a period


◉ Net income. Answer: the excess of a company's revenues over its
expenses


◉ statement of cash flows. Answer: reports the amount of cash
collected and paid out by a company in the following three types of
activities: operating, investing, and financing


◉ FASB. Answer: Which private body establishes accounting rules in
the U.S.?


◉ Financial Accounting Standards Board (FASB). Answer: a private
body established and supported by the joint efforts of the U.S.
business community, financial analysts, and practicing accountants