WGU C213 ACCOUNTING FOR DECISION MAKERS EXAM UPDATE.
ACURATE 2025 APRIL QUESTIONNS AND CORRECT ANSWERS.
Describe the purpose of accounting. - ANS -Accounting is the recording of day-to-day financial activities
and the organization of information into a summary of reports that evaluate the company's financial
status.
Which financial statements are used in financial accounting? - ANS -1. Balance Sheet
Income Statement
Statement of Cash Flows
Who are the "users" of financial statements? - ANS -Lenders, Investors, Management, Suppliers,
Customers, Employees, Competitors, Government Agencies, and the Press.
Identify US accounting rules and standards board. - ANS -FASB=Financial Accounting Standards Board
7 key members
GAAP=Generally Accepted Accounting Principles Not a government agency
Private group Started in 1973
What are some of the accredited organizations? - ANS -SEC=Securities and Exchange Commission
AICPA=American Institute of CPA's
PCAOB=Public Company Acctg. Oversight Board IRS=Internal Revenue Service IASB=International Acctg.
Standards Board
What are the current trends that are causing major changes in the field of accounting? - ANS -*Rapid
advance in information Technology
*International integrations of worldwide businesses
*Increase scrutiny associated w/ large acctg. scandals.
, Identify the purpose of a financial statement - ANS -1. Increasing information available about a
company, financial statements make it easier for a company to attract investors, lenders, and other
parties.
Financial statements make it easier to get better interest rates on loans.
Attracts investors on more favorable terms.
What are the components to a balance sheet? - ANS -It reports the company's financial position as any
specific point in time, it includes:
Resources (Assets)
Obligations (Liabilities)
*Net Ownership Interest (owner's/stockholders equity)
What is the accounting equation to calculate total assets, total liabilities, and/or total
owners/stockholders equity? - ANS -Assets = Liabilities + Owners/Stockerholders Equity
What is the purpose of the income statement? - ANS -To describe the company's financial performance
for a period of time.
What is the income statement formula? - ANS -Revenue - Expenses = Net Income
What is the purpose of the cash flow statement? - ANS -Details how the company obtained and spent
cash during any given period of time. It is described in the following terms:
Operating
Investing
Financing
What is the purpose of financial statement notes? - ANS -To provide more information to the financial
statement, including:
Summary of Accounting Principles
Additional Information about summary totals in the statements
Disclosure of Information not in the statements
Supplemental disclosure required by FASB and SEC.
ACURATE 2025 APRIL QUESTIONNS AND CORRECT ANSWERS.
Describe the purpose of accounting. - ANS -Accounting is the recording of day-to-day financial activities
and the organization of information into a summary of reports that evaluate the company's financial
status.
Which financial statements are used in financial accounting? - ANS -1. Balance Sheet
Income Statement
Statement of Cash Flows
Who are the "users" of financial statements? - ANS -Lenders, Investors, Management, Suppliers,
Customers, Employees, Competitors, Government Agencies, and the Press.
Identify US accounting rules and standards board. - ANS -FASB=Financial Accounting Standards Board
7 key members
GAAP=Generally Accepted Accounting Principles Not a government agency
Private group Started in 1973
What are some of the accredited organizations? - ANS -SEC=Securities and Exchange Commission
AICPA=American Institute of CPA's
PCAOB=Public Company Acctg. Oversight Board IRS=Internal Revenue Service IASB=International Acctg.
Standards Board
What are the current trends that are causing major changes in the field of accounting? - ANS -*Rapid
advance in information Technology
*International integrations of worldwide businesses
*Increase scrutiny associated w/ large acctg. scandals.
, Identify the purpose of a financial statement - ANS -1. Increasing information available about a
company, financial statements make it easier for a company to attract investors, lenders, and other
parties.
Financial statements make it easier to get better interest rates on loans.
Attracts investors on more favorable terms.
What are the components to a balance sheet? - ANS -It reports the company's financial position as any
specific point in time, it includes:
Resources (Assets)
Obligations (Liabilities)
*Net Ownership Interest (owner's/stockholders equity)
What is the accounting equation to calculate total assets, total liabilities, and/or total
owners/stockholders equity? - ANS -Assets = Liabilities + Owners/Stockerholders Equity
What is the purpose of the income statement? - ANS -To describe the company's financial performance
for a period of time.
What is the income statement formula? - ANS -Revenue - Expenses = Net Income
What is the purpose of the cash flow statement? - ANS -Details how the company obtained and spent
cash during any given period of time. It is described in the following terms:
Operating
Investing
Financing
What is the purpose of financial statement notes? - ANS -To provide more information to the financial
statement, including:
Summary of Accounting Principles
Additional Information about summary totals in the statements
Disclosure of Information not in the statements
Supplemental disclosure required by FASB and SEC.
