Accounting for decision makers C213 WGU (Accounting Exam with Detailed Correct Questions and Answers) A+ Graded 100% Excel

Accounting for decision makers C213 WGU (Accounting Exam with Detailed Correct Questions and Answers) A+ Graded 100% Excel 1. Prepare 2. Analyze 3. Gather 4. Make decisions 5. Implement 6. Observe. - CORRECT ANSWER-Accounting steps. Inside, Internal - CORRECT ANSWER-Managerial info is inside or outside the business? True. Financial accounting is only outside. Managerial accounting can be inside AND outside. - CORRECT ANSWER-True or false, managerial accounting uses BOTH managerial and financial accounting? Outside, External, includes lenders and investors - CORRECT ANSWER-Financial is inside or outside the business? Balance sheet, income statement, and statement of cash flows - CORRECT ANSWER-The financial statement includes what 3 documents Balance Sheet - CORRECT ANSWER-Point in time, Assets (resources) and liabilities (obligations) Income Statement - CORRECT ANSWER-Period of time (usually 1 year), amount of profit made Statement of Cash flows - CORRECT ANSWER-Period of time, where money came from, and where it went. Inflow and outflow of cash (Cash Flows). Change in money for the period. Balance sheet equation - CORRECT ANSWER-Assets= liabilities + equity Revenue equation - CORRECT ANSWER-Net income=Revenue - Expenses Operating, investing, and financial activities - CORRECT ANSWER-The statement of cash flows includes what three activities FASB: Financial accounting standards. Private, no government involvement. It is a public process, includes individuals experienced in business and accounting (7 members). - CORRECT ANSWER-The decision makers in the U.S. (accounting rules) GAAP: General accepted accounting principles - CORRECT ANSWER-Developed by accounting rule makers. No Legal authority. comparability - CORRECT ANSWER-We need accounting rules for... SEC: Security and exchange commission. Located in Article 1, Sec 8, Clause 3 - CORRECT ANSWER-U.S. gov agency responsible for ensuring that investors, creditors, and other financial statement users are provided with reliable information. It watches behavior in financial markets. Registration statements (prospectus), Form 10-K, Form 10-Q, and schedule 14A (proxy statement). These are all publicly viewable. - CORRECT ANSWER-What forms do the SEC regulate? Oversees stock exchanges, can suspend a company, investigate and suspect violations of the SEC rules. - CORRECT ANSWER-What does the SEC do? YES. The SEC has legal authority to establish accounting rules and disclosure requirements. - CORRECT ANSWER-Does the SEC have legal authority? USA congress->SEC->FASB - CORRECT ANSWER-Financial accounting rule per the US constitution FASB: Financial accounting standards board - CORRECT ANSWER-The SEC created the GAAP (has no legal authority) - CORRECT ANSWER-FASB created AIPCA: American INSTITUTE of certified public accountants. - CORRECT ANSWER-What sets auditory standards, continue education credits, CPA exam, and is the code of professional conduct? Only CPA's: Certified public accountants. - CORRECT ANSWER-Who is the only person who can sign audit reports? PCAOB: Public company accounting oversight board. - CORRECT ANSWER-The Sarbanes-Oxley Act "SOX" created? Under supervision of the SEC. - CORRECT ANSWER-PCAOB is under supervision of? PCAOB: Public Company Accounting OVERSIGHT Board. - CORRECT ANSWER-Who appoints members, approves actions, gov standards, inspections, and investigations? It is a private group and OVERSEES. AUDITORS? U.S. Gov agency that collects and regulates income taxes. Their primary goal is to collect revenue. - CORRECT ANSWER-IRS Economic income and accounting income books. & Tax income, and cash flow books. - CORRECT ANSWER-There are two sets of books. Tax Books and Financial accounting books. Similar to the FASB, but not 100% the same. It is international, everywhere but the U.S. - CORRECT ANSWER-IASB: Internatonal Accounting Standard Board Who enforces and national policies. - CORRECT ANSWER-Barriers to international convergence are? Condorsement - CORRECT ANSWER-Rules set centrally, but legally adopted and enforced locally? The SEC, SOX, and PCAOB. - CORRECT ANSWER-To increase government regulation, one would use: Reduce uncertainty and allows lenders and investors to target their financing and investing to the level of risk they are willing to take. - CORRECT ANSWER-Financial statements Adudit - CORRECT ANSWER-A financial statement that furthermore decreases uncertainty. Income Statement - CORRECT ANSWER-Provides accountants the best attempt at measuring the economic performance of a company. Balance sheet - CORRECT ANSWER-Mother of all financial statements.