1
WGU C213 PA & OA Study Guide Accounting for
Decision Makers Exam (Latest Update)
Questions and Verified Answers | 100% Correct |
Grade A+
Which of the following is the most correct definition of accounting? -
...(ANSWERS)....A system for providing quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in
making economic decisions
What is NOT typically true of accounting information? - ...(ANSWERS)....The
information relates to future time periods.
Which is NOT a key component of the definition of accounting? -
...(ANSWERS)....Qualitative
What is true about the double-entry system of bookkeeping? - ...(ANSWERS)....It
was developed in the 1300s−1400s in Italy.
Businesses use accounting systems to - ...(ANSWERS)....Analyze transactions;
Handle routine bookkeeping tasks; Evaluate performance and health of the
business.
What is not a function of accounting? - ...(ANSWERS)....Executing sales
transactions for organizations
, 2
What is NOT one of the three primary financial statements? -
...(ANSWERS)....Statement of retained earnings
Generally accepted accounting principles are - ...(ANSWERS)....Developed by
accounting rule makers
The initials GAAP stand for - ...(ANSWERS)....Generally Accepted Accounting
Principles
The current standard-setting board for accounting in the private sector is the -
...(ANSWERS)....Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies? - ...(ANSWERS)....Securities
and Exchange Commission (SEC)
Which is NOT a service typically provided by large public accounting firms? -
...(ANSWERS)....Making management decisions
The organization that develops worldwide accounting standards is the -
...(ANSWERS)....International Accounting Standards Board (IASB)
The initials CPA stand for - ...(ANSWERS)....Certified Public Accountant
, 3
Which of the following financial statements reports a company's resources,
obligations, and owner's equity? - ...(ANSWERS)....Balance sheet
Which of the following financial statements reports the excess of a company's
revenues over its expenses? - ...(ANSWERS)....Income statement
Which of the following financial statements reports the amount of cash collected
and paid out by a company? - ...(ANSWERS)....Statement of cash flows
The emphasis in financial accounting is on which of the following external user
groups? - ...(ANSWERS)....Investors and creditors
The primary internal group that uses accounting information is -
...(ANSWERS)....Management
Internal reports are generally used by - ...(ANSWERS)....Management
Which of the following is NOT an external user of financial information? -
...(ANSWERS)....Management
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)? - ...(ANSWERS)....It is a government agency
, 4
Generally accepted accounting principles are - ...(ANSWERS)....Developed by
accounting rule makers
The initials GAAP stand for - ...(ANSWERS)....Generally Accepted Accounting
Principles
The current standard-setting board for accounting in the private sector is the -
...(ANSWERS)....Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies? - ...(ANSWERS)....Securities
and Exchange Commission (SEC)
Which of the following is NOT a service typically provided by large public
accounting firms? - ...(ANSWERS)....Making management decisions
The organization that develops worldwide accounting standards is the -
...(ANSWERS)....International Accounting Standards Board (IASB)
The initials CPA stand for - ...(ANSWERS)....Certified Public Accountant
Standards established by the International Accounting Standards Board are
referred to as - ...(ANSWERS)....International Financial Accounting Standards
WGU C213 PA & OA Study Guide Accounting for
Decision Makers Exam (Latest Update)
Questions and Verified Answers | 100% Correct |
Grade A+
Which of the following is the most correct definition of accounting? -
...(ANSWERS)....A system for providing quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in
making economic decisions
What is NOT typically true of accounting information? - ...(ANSWERS)....The
information relates to future time periods.
Which is NOT a key component of the definition of accounting? -
...(ANSWERS)....Qualitative
What is true about the double-entry system of bookkeeping? - ...(ANSWERS)....It
was developed in the 1300s−1400s in Italy.
Businesses use accounting systems to - ...(ANSWERS)....Analyze transactions;
Handle routine bookkeeping tasks; Evaluate performance and health of the
business.
What is not a function of accounting? - ...(ANSWERS)....Executing sales
transactions for organizations
, 2
What is NOT one of the three primary financial statements? -
...(ANSWERS)....Statement of retained earnings
Generally accepted accounting principles are - ...(ANSWERS)....Developed by
accounting rule makers
The initials GAAP stand for - ...(ANSWERS)....Generally Accepted Accounting
Principles
The current standard-setting board for accounting in the private sector is the -
...(ANSWERS)....Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies? - ...(ANSWERS)....Securities
and Exchange Commission (SEC)
Which is NOT a service typically provided by large public accounting firms? -
...(ANSWERS)....Making management decisions
The organization that develops worldwide accounting standards is the -
...(ANSWERS)....International Accounting Standards Board (IASB)
The initials CPA stand for - ...(ANSWERS)....Certified Public Accountant
, 3
Which of the following financial statements reports a company's resources,
obligations, and owner's equity? - ...(ANSWERS)....Balance sheet
Which of the following financial statements reports the excess of a company's
revenues over its expenses? - ...(ANSWERS)....Income statement
Which of the following financial statements reports the amount of cash collected
and paid out by a company? - ...(ANSWERS)....Statement of cash flows
The emphasis in financial accounting is on which of the following external user
groups? - ...(ANSWERS)....Investors and creditors
The primary internal group that uses accounting information is -
...(ANSWERS)....Management
Internal reports are generally used by - ...(ANSWERS)....Management
Which of the following is NOT an external user of financial information? -
...(ANSWERS)....Management
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)? - ...(ANSWERS)....It is a government agency
, 4
Generally accepted accounting principles are - ...(ANSWERS)....Developed by
accounting rule makers
The initials GAAP stand for - ...(ANSWERS)....Generally Accepted Accounting
Principles
The current standard-setting board for accounting in the private sector is the -
...(ANSWERS)....Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies? - ...(ANSWERS)....Securities
and Exchange Commission (SEC)
Which of the following is NOT a service typically provided by large public
accounting firms? - ...(ANSWERS)....Making management decisions
The organization that develops worldwide accounting standards is the -
...(ANSWERS)....International Accounting Standards Board (IASB)
The initials CPA stand for - ...(ANSWERS)....Certified Public Accountant
Standards established by the International Accounting Standards Board are
referred to as - ...(ANSWERS)....International Financial Accounting Standards
