C213 Accounting WGU UPDATED
ACTUAL Exam Questions and CORECT
Answers
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
ACTUAL Exam Questions and CORECT
Answers
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
