WGU ACCOUNTING FOUNDATIONS & FINANCIAL
STATEMENTS MASTER FLASHCARDS 2025/2026 | 300+
VERIFIED Q&A | BALANCE SHEET, INCOME
STATEMENT, GAAP, FASB & RATIO ANALYSIS
Accounting - 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 - the preservation of a systematic, quantitative record of an activity
accounting system - 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 - Info that is intended to be useful in making decisions about the
future.
The balance sheet, the income statement, and the statement of cashflows - What are the three
primary financial statements?
External Users - Who is financial accounting information primarily prepared for and used
by?
Managerial Accounting - the name given to accounting systems designed for internal
users
Balance Sheet - Reports a company's assets, liabilities, and owners' equity
, Income Statement - reports the amount of net income earned by a company during a
period
Net income - the excess of a company's revenues over its expenses
statement of cash flows - reports the amount of cash collected and paid out by a company in
the following three types of activities: operating, investing, and financing
FASB - Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards Board (FASB) - 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) - 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) - the professional organization
of certified public accountants (CPAs) in the United States
Public Company Accounting Oversight Board (PCAOB) - the organization that inspects the
audit practices of registered audit firms and has statutory authority to investigate questionable
audit practices and to impose sanctions such as barring an audit firm from auditing SEC-
registered companies
Internal Revenue Service (IRS) - Gov't agency that establishes rules to define exactly when
income should be taxed. It has no role in setting financial accounting rules; and a company's
financial statements are not used in determining how much tax the company must
pay
STATEMENTS MASTER FLASHCARDS 2025/2026 | 300+
VERIFIED Q&A | BALANCE SHEET, INCOME
STATEMENT, GAAP, FASB & RATIO ANALYSIS
Accounting - 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 - the preservation of a systematic, quantitative record of an activity
accounting system - 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 - Info that is intended to be useful in making decisions about the
future.
The balance sheet, the income statement, and the statement of cashflows - What are the three
primary financial statements?
External Users - Who is financial accounting information primarily prepared for and used
by?
Managerial Accounting - the name given to accounting systems designed for internal
users
Balance Sheet - Reports a company's assets, liabilities, and owners' equity
, Income Statement - reports the amount of net income earned by a company during a
period
Net income - the excess of a company's revenues over its expenses
statement of cash flows - reports the amount of cash collected and paid out by a company in
the following three types of activities: operating, investing, and financing
FASB - Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards Board (FASB) - 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) - 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) - the professional organization
of certified public accountants (CPAs) in the United States
Public Company Accounting Oversight Board (PCAOB) - the organization that inspects the
audit practices of registered audit firms and has statutory authority to investigate questionable
audit practices and to impose sanctions such as barring an audit firm from auditing SEC-
registered companies
Internal Revenue Service (IRS) - Gov't agency that establishes rules to define exactly when
income should be taxed. It has no role in setting financial accounting rules; and a company's
financial statements are not used in determining how much tax the company must
pay
