1
Accounting for decision makers C213 WGU Exam
Questions And Answers |Latest 2025 | Guaranteed
Pass
1. Prepare 2. Analyze 3. Gather 4. Make decisions 5. Implement 6. Observe. -
(answers)Accounting steps.
Inside, Internal - (answers)Managerial info is inside or outside the business?
True. Financial accounting is only outside. Managerial accounting can be inside
AND outside. - (answers)True or false, managerial accounting uses BOTH
managerial and financial accounting?
Outside, External, includes lenders and investors - (answers)Financial is inside or
outside the business?
Balance sheet, income statement, and statement of cash flows - (answers)The
financial statement includes what 3 documents
Balance Sheet - (answers)Point in time, Assets (resources) and liabilities
(obligations)
Income Statement - (answers)Period of time (usually 1 year), amount of profit
made
,2
Statement of Cash flows - (answers)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 - (answers)Assets= liabilities + equity
Revenue equation - (answers)Net income=Revenue - Expenses
Operating, investing, and financial activities - (answers)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). - (answers)The decision makers in the U.S. (accounting rules)
GAAP: General accepted accounting principles - (answers)Developed by
accounting rule makers. No Legal authority.
comparability - (answers)We need accounting rules for...
SEC: Security and exchange commission. Located in Article 1, Sec 8, Clause 3 -
(answers)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.
,3
Registration statements (prospectus), Form 10-K, Form 10-Q, and schedule 14A
(proxy statement). These are all publicly viewable. - (answers)What forms do the
SEC regulate?
Oversees stock exchanges, can suspend a company, investigate and suspect
violations of the SEC rules. - (answers)What does the SEC do?
YES. The SEC has legal authority to establish accounting rules and disclosure
requirements. - (answers)Does the SEC have legal authority?
USA congress->SEC->FASB - (answers)Financial accounting rule per the US
constitution
FASB: Financial accounting standards board - (answers)The SEC created the
GAAP (has no legal authority) - (answers)FASB created
AIPCA: American INSTITUTE of certified public accountants. - (answers)What sets
auditory standards, continue education credits, CPA exam, and is the code of
professional conduct?
Only CPA's: Certified public accountants. - (answers)Who is the only person who
can sign audit reports?
, 4
PCAOB: Public company accounting oversight board. - (answers)The Sarbanes-
Oxley Act "SOX" created?
Under supervision of the SEC. - (answers)PCAOB is under supervision of?
PCAOB: Public Company Accounting OVERSIGHT Board. - (answers)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. - (answers)IRS
Economic income and accounting income books. & Tax income, and cash flow
books. - (answers)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. - (answers)IASB: Internatonal Accounting Standard Board
Who enforces and national policies. - (answers)Barriers to international
convergence are?
Condorsement - (answers)Rules set centrally, but legally adopted and enforced
locally?
Accounting for decision makers C213 WGU Exam
Questions And Answers |Latest 2025 | Guaranteed
Pass
1. Prepare 2. Analyze 3. Gather 4. Make decisions 5. Implement 6. Observe. -
(answers)Accounting steps.
Inside, Internal - (answers)Managerial info is inside or outside the business?
True. Financial accounting is only outside. Managerial accounting can be inside
AND outside. - (answers)True or false, managerial accounting uses BOTH
managerial and financial accounting?
Outside, External, includes lenders and investors - (answers)Financial is inside or
outside the business?
Balance sheet, income statement, and statement of cash flows - (answers)The
financial statement includes what 3 documents
Balance Sheet - (answers)Point in time, Assets (resources) and liabilities
(obligations)
Income Statement - (answers)Period of time (usually 1 year), amount of profit
made
,2
Statement of Cash flows - (answers)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 - (answers)Assets= liabilities + equity
Revenue equation - (answers)Net income=Revenue - Expenses
Operating, investing, and financial activities - (answers)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). - (answers)The decision makers in the U.S. (accounting rules)
GAAP: General accepted accounting principles - (answers)Developed by
accounting rule makers. No Legal authority.
comparability - (answers)We need accounting rules for...
SEC: Security and exchange commission. Located in Article 1, Sec 8, Clause 3 -
(answers)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.
,3
Registration statements (prospectus), Form 10-K, Form 10-Q, and schedule 14A
(proxy statement). These are all publicly viewable. - (answers)What forms do the
SEC regulate?
Oversees stock exchanges, can suspend a company, investigate and suspect
violations of the SEC rules. - (answers)What does the SEC do?
YES. The SEC has legal authority to establish accounting rules and disclosure
requirements. - (answers)Does the SEC have legal authority?
USA congress->SEC->FASB - (answers)Financial accounting rule per the US
constitution
FASB: Financial accounting standards board - (answers)The SEC created the
GAAP (has no legal authority) - (answers)FASB created
AIPCA: American INSTITUTE of certified public accountants. - (answers)What sets
auditory standards, continue education credits, CPA exam, and is the code of
professional conduct?
Only CPA's: Certified public accountants. - (answers)Who is the only person who
can sign audit reports?
, 4
PCAOB: Public company accounting oversight board. - (answers)The Sarbanes-
Oxley Act "SOX" created?
Under supervision of the SEC. - (answers)PCAOB is under supervision of?
PCAOB: Public Company Accounting OVERSIGHT Board. - (answers)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. - (answers)IRS
Economic income and accounting income books. & Tax income, and cash flow
books. - (answers)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. - (answers)IASB: Internatonal Accounting Standard Board
Who enforces and national policies. - (answers)Barriers to international
convergence are?
Condorsement - (answers)Rules set centrally, but legally adopted and enforced
locally?
