WGU C213 Accounting for Decision Makers ABCD. Full Exam Review, Questions and answers, rated A+ 2024 | 20 Pages

Accounting - -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 Bookkeeping - -the preservation of a systematic, quantitative record of an activity accounting system - -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 - -Info that is intended to be useful in making decisions about the future. The balance sheet, the income statement, and the statement of cashflows - -What are the three primary financial statements? External Users - -Who is financial accounting information primarily prepared for and used by? Managerial Accounting - -the name given to accounting systems designed for internal users Balance Sheet - -Reports a company's assets, liabilities, and owners' equity Income Statement - -reports the amount of net income earned by a company during a period Net income - -the excess of a company's revenues over its expensesstatement of cash flows - -reports the amount of cash collected and paid out by a company in the following three types of activities: operating, investing, and financing FASB - -Which private body establishes accounting rules in the U.S.? Financial Accounting Standards Board (FASB) - -a private body established and supported by the joint efforts of the U.S. business community, financial analysts, and practicing accountants The Securities and Exchange Commission (SEC) - -the organization that regulates U.S. stock exchanges and seeks to create a fair information environment in which investors can buy and sell stocks without fear that companies are hiding or manipulating financial data