C213 Accounting WGU – Questions and Answers_ 100% A+ Graded

C213 Accounting WGU – Questions and Answers_ 100% A+ Graded 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" AICPA - CORRECT ANSWER-American Institute of Certified Public Accountants-the professional organization of certified public accountants in the united states 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. Bookkeeping - CORRECT ANSWER-The preservation of a systematic, quantitative record of an activity 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. Financial Accounting - CORRECT ANSWER-the name given to accounting information provided for and used by external users FASB - CORRECT ANSWER-Financial Accounting Standards Board - governmental body that sets accounting standards in the United States Financial Statements - CORRECT ANSWER-the three primary financial information documents: the balance sheet, income statement, and statement of cash flows 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 - CORRECT ANSWER-Internal Revenue Service m- the government agency responsible for tax collection and tax law enforcement IASB - CORRECT ANSWER-International Accounting Standards Board - an independent, international body formed to develop worldwide accounting standards IFRS - CORRECT ANSWER-International Financial Reporting Standards - the accounting standards produced by the IASB Managerial Accounting - CORRECT ANSWER-the name given to accounting systems designed for internal users 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. 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. Accounting Equation - CORRECT ANSWER-assets = liabilities + owner's equity Accumulated Other Comprehensive Income - CORRECT ANSWER-the source of theses increased assets 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" Balance Sheet - CORRECT ANSWER-a statement of financial position - shows the financial resources the company owns or controls and the claims on those resources Book Value - CORRECT ANSWER-the book value of an asset is the asset's cost minus the asset's accumulated depreciation Comparability - CORRECT ANSWER-information that becomes much more useful when it can be related to a benchmark or standard Conservatism - CORRECT ANSWER-a pervasive factor in accounting summarized as, when in doubt, recognize all losses but don't recognize any gains Consistency - CORRECT ANSWER-the principle that, once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods Disclosure - CORRECT ANSWER-Disclosure in the notes that accompany the financial statements is the accepted way to convey information to users when the information is too uncertain to be able to be boiled down into one concrete number EPS - CORRECT ANSWER-Earnings per Share = tells the owner of one share of stock what she or she really wanted to know Entity Concept - CORRECT ANSWER-the idea that personal financial activity is kept separate from business financial activity Expenses - CORRECT ANSWER-the amount of assets consumed from the performance of business operations and thus are the opposite of revenues External Audit - CORRECT ANSWER-audit conducted by external (independent) qualified accountants Financing Activities - CORRECT ANSWER-those activities whereby cash is obtained from, or repaid to, owners and creditors Gains - CORRECT ANSWER-refers to money made on activities outside the normal business of a company Going Concern Assumption - CORRECT ANSWER-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 - CORRECT ANSWER-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 - CORRECT ANSWER-a company's financial performance for a specified period of time Investing Activities - CORRECT ANSWER-the purchase and sale of land, buildings, and equipment. investing activities also include buying and selling stocks of other companies