C213 WGU OBJECTIVE ASSESSMENT UPDATED ACTUAL Exam Questions and CORRECT Answers | Comprehensive Study Pack with Detailed Rationales | A+ Verified

C213 WGU OBJECTIVE ASSESSMENT UPDATED ACTUAL Exam
Questions and CORRECT Answers | Comprehensive Study Pack
with Detailed Rationales | A+ Verified

Question 1.
Accounting

Correct Answer: a system of providing "quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in
making economic decisions"


Question 2.
AICPA

Correct Answer: American Institute of Certified Public Accountants-the
professional organization of certified public accountants in the united states


Question 3.
Balance Sheet

Correct Answer: document which reports the resources of a company (assets),
the company's obligations (liabilities), and the owner's equity, which
represents how much money has been invested in the company by its owners.


Question 4.
Bookkeeping

Correct Answer: The preservation of a systematic, quantitative record of an
activity


Question 5.
CPA

Correct Answer: 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.


Question 6.
Financial Accounting

Correct Answer: the name given to accounting information provided for and
used by external users

,Question 7.
FASB

Correct Answer: Financial Accounting Standards Board - governmental body
that sets accounting standards in the United States


Question 8.
Financial Statements

Correct Answer: the three primary financial information documents: the
balance sheet, income statement, and statement of cash flows


Question 9.
Income Statement

Correct Answer: 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
• IRS -✓✓Internal Revenue Service m- the government agency responsible for
tax collection and tax law enforcement


Question 10.
IASB

Correct Answer: International Accounting Standards Board - an independent,
international body formed to develop worldwide accounting standards


Question 11.
IFRS

Correct Answer: International Financial Reporting Standards - the accounting
standards produced by the IASB


Question 12.
Managerial Accounting

Correct Answer: the name given to accounting systems designed for internal
users


Question 13.
PCAOB

Correct Answer: Public Company Accounting Oversight Board - a private,
non-profit organization that effectively serves as an arm of the SEC in
registering, inspecting, and disciplining the auditors of all publicly traded
companies.

, Question 14.
Statement of Cash Flows

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


Question 15.
Accounting Equation

Correct Answer: assets = liabilities + owner's equity


Question 16.
Accumulated Other Comprehensive Income

Correct Answer: the source of theses increased assets


Question 17.
Assets

Correct Answer: 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"


Question 18.
Balance Sheet

Correct Answer: a statement of financial position - shows the financial
resources the company owns or controls and the claims on those resources


Question 19.
Book Value

Correct Answer: the book value of an asset is the asset's cost minus the
asset's accumulated depreciation
• Comparability -✓✓information that becomes much more useful when it can
be related to a benchmark or standard


Question 20.
Conservatism

Correct Answer: a pervasive factor in accounting summarized as, when in
doubt, recognize all losses but don't recognize any gains