WGU C213 Exam NEWEST 2025 COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND NEW
VERSION!!
Balance Sheet - CORRECT ANSWER- Reports a company's assets, liabilities, and owner's equity.
Income Statement - CORRECT ANSWER- 1. Reports the amount of net income earned by a
company during a period.
2. Reports gains and losses from activities outside a companies normal operations.
Single-step Income Statement - CORRECT ANSWER- Groups the revenues and expenses, and
reports the overall difference as net income.
Multi-step Income Statement - CORRECT ANSWER- Emphasizes the presentation of gross profit
and operating income.
Net Income - CORRECT ANSWER- The excess of a company's revenues over its expenses.
Revenues, Expenses, Gains, Losses
,Statement of Cash Flows - CORRECT ANSWER- Reports cash collected and paid out by a
company. Operating, Investing, Financing
Financial Accounting Standards Board - CORRECT ANSWER- Not Government, Private body
established by the US business community, financial analysts, and practicing accountants, Has
no legal power.
Securities and Exchange Commission - CORRECT ANSWER- Regulates US stock exchanges
Role of SEC - CORRECT ANSWER- Makes sure investors are provided with reliable information,
Adds credibility, Requires certain reports, 10-Q & 10-K, from companies.
Public Company Accounting Oversight Board - CORRECT ANSWER- Inspects the audit practices,
Has statutory authority to investigate questionable audit practices, Can impose sanctions
Trends of Accounting - CORRECT ANSWER- Information technology, integration of worldwide
business, Increased scrutiny
Purpose of Accounting - CORRECT ANSWER- 1. Recording of the day-to-day financial activities
2. Used to evaluate the company's financial status.
Bookkeeping - CORRECT ANSWER- Systematic quantitative record of an activity.
Accounting System - CORRECT ANSWER- 1. Handle routine bookkeeping tasks.
2. Evaluate the performance and financial status of the business.
Accounting Information - CORRECT ANSWER- Used to make decisions about the future
, Financial Accounting - CORRECT ANSWER- Used by external users.
Managerial Accounting - CORRECT ANSWER- Accounting systems designed for internal users.
Constraints on Auditors (Sarbanes-Oxley) - CORRECT ANSWER- 1. Auditors are prohibited from
providing nonaudit services to audit clients.
2. Audit partners must rotate every five years.
3. Auditors must report to the audit committee of the board of directors.
Constraints on Management (Sarbanes-Oxley) - CORRECT ANSWER- 1. The CEO and the CFO
must personally certify the reliability of the financial statements
2. Companies must have a code of ethics
3. Loans to company executives are prohibited
4. Audit committees must be strengthened
Assets - CORRECT ANSWER- Probable future economic benefits obtained or controlled by a
company as a result of past transactions or events.
Liabilities - CORRECT ANSWER- 1. Probable future sacrifices of economic benefits arising from
present obligations of a company to transfer assets.
2. Or provide services in the future as a result of past transaction or events.
Owners' Equity - CORRECT ANSWER- The residual interest in the assets of a company that
remains after deducting its liabilities.
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND NEW
VERSION!!
Balance Sheet - CORRECT ANSWER- Reports a company's assets, liabilities, and owner's equity.
Income Statement - CORRECT ANSWER- 1. Reports the amount of net income earned by a
company during a period.
2. Reports gains and losses from activities outside a companies normal operations.
Single-step Income Statement - CORRECT ANSWER- Groups the revenues and expenses, and
reports the overall difference as net income.
Multi-step Income Statement - CORRECT ANSWER- Emphasizes the presentation of gross profit
and operating income.
Net Income - CORRECT ANSWER- The excess of a company's revenues over its expenses.
Revenues, Expenses, Gains, Losses
,Statement of Cash Flows - CORRECT ANSWER- Reports cash collected and paid out by a
company. Operating, Investing, Financing
Financial Accounting Standards Board - CORRECT ANSWER- Not Government, Private body
established by the US business community, financial analysts, and practicing accountants, Has
no legal power.
Securities and Exchange Commission - CORRECT ANSWER- Regulates US stock exchanges
Role of SEC - CORRECT ANSWER- Makes sure investors are provided with reliable information,
Adds credibility, Requires certain reports, 10-Q & 10-K, from companies.
Public Company Accounting Oversight Board - CORRECT ANSWER- Inspects the audit practices,
Has statutory authority to investigate questionable audit practices, Can impose sanctions
Trends of Accounting - CORRECT ANSWER- Information technology, integration of worldwide
business, Increased scrutiny
Purpose of Accounting - CORRECT ANSWER- 1. Recording of the day-to-day financial activities
2. Used to evaluate the company's financial status.
Bookkeeping - CORRECT ANSWER- Systematic quantitative record of an activity.
Accounting System - CORRECT ANSWER- 1. Handle routine bookkeeping tasks.
2. Evaluate the performance and financial status of the business.
Accounting Information - CORRECT ANSWER- Used to make decisions about the future
, Financial Accounting - CORRECT ANSWER- Used by external users.
Managerial Accounting - CORRECT ANSWER- Accounting systems designed for internal users.
Constraints on Auditors (Sarbanes-Oxley) - CORRECT ANSWER- 1. Auditors are prohibited from
providing nonaudit services to audit clients.
2. Audit partners must rotate every five years.
3. Auditors must report to the audit committee of the board of directors.
Constraints on Management (Sarbanes-Oxley) - CORRECT ANSWER- 1. The CEO and the CFO
must personally certify the reliability of the financial statements
2. Companies must have a code of ethics
3. Loans to company executives are prohibited
4. Audit committees must be strengthened
Assets - CORRECT ANSWER- Probable future economic benefits obtained or controlled by a
company as a result of past transactions or events.
Liabilities - CORRECT ANSWER- 1. Probable future sacrifices of economic benefits arising from
present obligations of a company to transfer assets.
2. Or provide services in the future as a result of past transaction or events.
Owners' Equity - CORRECT ANSWER- The residual interest in the assets of a company that
remains after deducting its liabilities.
