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WGU C213 Accounting for Decision
Makers – Complete Study Guide with
Updated Questions and Answers
Accounting Answer: the recording of the day-to-day financial activities of a
company and the organization of that information into summary reports used to
evaluate the company's financial status
Bookkeeping Answer: the preservation of a systematic, quantitative record of an
activity
Accounting system Answer: used by a business to handle routine bookkeeping
tasks and to structure the information so it can be used to evaluate the performance
and financial status of the business
Accounting information Answer: Info that is intended to be useful in making
decisions about the future.
The balance sheet, the income statement, and the statement of cashflows
Answer: What are the three primary financial statements?
External Users Answer: Who is financial accounting information primarily
prepared for and used by?
Managerial Accounting Answer: the name given to accounting systems designed
for internal users
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Balance Sheet Answer: Reports a company's assets, liabilities, and owners' equity
Income Statement Answer: reports the amount of net income earned by a company
during a period
Net income Answer: the excess of a company's revenues over its expenses
Statement of cash flows Answer: reports the amount of cash collected and paid out
by a company in the following three types of activities: operating, investing, and
financing
FASB Answer: Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards Board (FASB) Answer: a private body established
and supported by the joint efforts of the U.S. business community, financial
analysts, and practicing accountants
The Securities and Exchange Commission (SEC) Answer: the organization that
regulates U.S. stock exchanges and seeks to create a fair information environment
in which investors can buy and sell stocks without fear that companies are hiding
or manipulating financial data
American Institute of Certified Public Accountants (AICPA)
Answer: the professional organization of certified public accountants (CPAs) in the
United States
WGU C213 Accounting for Decision
Makers – Complete Study Guide with
Updated Questions and Answers
Accounting Answer: the recording of the day-to-day financial activities of a
company and the organization of that information into summary reports used to
evaluate the company's financial status
Bookkeeping Answer: the preservation of a systematic, quantitative record of an
activity
Accounting system Answer: used by a business to handle routine bookkeeping
tasks and to structure the information so it can be used to evaluate the performance
and financial status of the business
Accounting information Answer: Info that is intended to be useful in making
decisions about the future.
The balance sheet, the income statement, and the statement of cashflows
Answer: What are the three primary financial statements?
External Users Answer: Who is financial accounting information primarily
prepared for and used by?
Managerial Accounting Answer: the name given to accounting systems designed
for internal users
, 2|Page
Balance Sheet Answer: Reports a company's assets, liabilities, and owners' equity
Income Statement Answer: reports the amount of net income earned by a company
during a period
Net income Answer: the excess of a company's revenues over its expenses
Statement of cash flows Answer: reports the amount of cash collected and paid out
by a company in the following three types of activities: operating, investing, and
financing
FASB Answer: Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards Board (FASB) Answer: a private body established
and supported by the joint efforts of the U.S. business community, financial
analysts, and practicing accountants
The Securities and Exchange Commission (SEC) Answer: the organization that
regulates U.S. stock exchanges and seeks to create a fair information environment
in which investors can buy and sell stocks without fear that companies are hiding
or manipulating financial data
American Institute of Certified Public Accountants (AICPA)
Answer: the professional organization of certified public accountants (CPAs) in the
United States
