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WGU C213 Accounting for Decision Makers
Questions and Answers
Accounting
Ans: 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
Ans: the preservation of a systematic, quantitative record of an activity
accounting system
Ans: 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
Ans: Info that is intended to be useful in making decisions about the
future.
The balance sheet, the income statement, and the statement of
cashflows
Ans: What are the three primary financial statements?
External Users
Ans: Who is financial accounting information primarily prepared for and
used by?
Managerial Accounting
Ans: the name given to accounting systems designed for internal users
Balance Sheet
© 2025 All rights reserved
, 2 | Page
Ans: Reports a company's assets, liabilities, and owners' equity
Income Statement
Ans: reports the amount of net income earned by a company during a
period
Net income
Ans: the excess of a company's revenues over its expenses
statement of cash flows
Ans: reports the amount of cash collected and paid out by a company in
the following three types of activities: operating, investing, and
financing
FASB
Ans: Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards Board (FASB)
Ans: 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)
Ans: 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)
Ans: the professional organization of certified public accountants (CPAs)
in the United States
Public Company Accounting Oversight Board (PCAOB)
© 2025 All rights reserved
WGU C213 Accounting for Decision Makers
Questions and Answers
Accounting
Ans: 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
Ans: the preservation of a systematic, quantitative record of an activity
accounting system
Ans: 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
Ans: Info that is intended to be useful in making decisions about the
future.
The balance sheet, the income statement, and the statement of
cashflows
Ans: What are the three primary financial statements?
External Users
Ans: Who is financial accounting information primarily prepared for and
used by?
Managerial Accounting
Ans: the name given to accounting systems designed for internal users
Balance Sheet
© 2025 All rights reserved
, 2 | Page
Ans: Reports a company's assets, liabilities, and owners' equity
Income Statement
Ans: reports the amount of net income earned by a company during a
period
Net income
Ans: the excess of a company's revenues over its expenses
statement of cash flows
Ans: reports the amount of cash collected and paid out by a company in
the following three types of activities: operating, investing, and
financing
FASB
Ans: Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards Board (FASB)
Ans: 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)
Ans: 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)
Ans: the professional organization of certified public accountants (CPAs)
in the United States
Public Company Accounting Oversight Board (PCAOB)
© 2025 All rights reserved
