WGU C213 TOPICS 1-6 QUIZZES 2025/26 UPDATE (51%
OF EXAM COMPETENCIES) | 141 QUESTIONS AND
ANSWERS | WITH COPLETE SOLUTION
The emphasis in financial accounting is on which of the following external user
groups? Answer - Investors and creditors
The primary internal group that uses accounting information is? Answer -
Management
Internal reports are generally used by? Answer - Management
Which of the following is NOT an external user of financial information?
Answer - Management
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)? Answer - It is a government agency
Generally accepted accounting principles are? Answer - Developed by
accounting rule makers
The initials GAAP stand for? Answer - Generally Accepted Accounting
Principles
,The current standard-setting board for accounting in the private sector is the?
Answer - Financial Accounting Standards Board (FASB)
Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States? Answer -
Internal Revenue Service
The organization that develops worldwide accounting standards is the?
Answer - International Accounting Standards Board (IASB)
Standards established by the International Accounting Standards Board are
referred to as? Answer - International Financial Accounting Standards
Which of the following is NOT a service typically provided by large public
accounting firms? Answer - Making management decisions
Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies? Answer - Securities and
Exchange Commission (SEC)
Which of the following is NOT a reason for the integration of worldwide
accounting standards? Answer - The theoretical necessity of a common set of
accounting standards
The International Accounting Standards Board (IASB) is charged with
developing worldwide accounting practices? True or False? Answer - True
With the current state of information technology, investors outside a company
are now allowed access to a company's internal database of financial
,information and do their own customized analysis of a firm's performance.
True or False? Answer - False
While the technology may be available, companies are still not allowing
outsiders access to their internal accounting records. True or False? Answer -
True
Increased federal oversight of the audit process resulted from the passage of
the following act of Congress - Answer - Sarbanes-Oxley Act
A borrower benefits from providing financial information regarding income and
expenses in the form of a lower interest rate on the loan because of reduced
uncertainty for the lender with regard to repayment. True or False? Answer -
True
Which of the following is NOT one of the three primary financial statements?
Answer - The Statement of Retained Earnings
One reason for a company's preparing and providing financial statements is to
reduce uncertainty for an investor regarding the firm's future financial
performance. True or False? Answer - True
Which of the following distinguishes between current and long-term assets?
Answer - Classified balance sheet
Which of the following financial statements provides a picture of the enterprise
at a particular point in time? Answer - Balance sheet
, Which of the following is the reason that the accounting equation is true by
definition? Answer - Liabilities and owner's equity are the sources that fund
the purchase of assets
The idea that businesses must be accounted for as though they will exist at
least for the forseeable future is the? Answer - Going concern concept
Revenues cause? Answer - An increase in net assets
Which of the following is an overall measure of the performance of a business
entity's activities? Answer - Net income (or net loss)
The financial statement that presents a summary of the revenues and expenses
of a business for a specific period of time, such as a month or a year, is called
a(n)? Answer - Income Statement
Which of the following would be included on an income statement? Answer -
Rent expense
Another name for the income statement is? Answer - Statement of earnings
Which of the following classification does NOT appear on the Statement of
Cash Flows? Answer - Borrowing
Which of the following classifications refers to those activities whereby cash is
obtained or repaid to owners and creditors? Answer - Financing
Which of the following activities would NOT be classified as an investing
activity? Answer - Purchase of inventory
OF EXAM COMPETENCIES) | 141 QUESTIONS AND
ANSWERS | WITH COPLETE SOLUTION
The emphasis in financial accounting is on which of the following external user
groups? Answer - Investors and creditors
The primary internal group that uses accounting information is? Answer -
Management
Internal reports are generally used by? Answer - Management
Which of the following is NOT an external user of financial information?
Answer - Management
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)? Answer - It is a government agency
Generally accepted accounting principles are? Answer - Developed by
accounting rule makers
The initials GAAP stand for? Answer - Generally Accepted Accounting
Principles
,The current standard-setting board for accounting in the private sector is the?
Answer - Financial Accounting Standards Board (FASB)
Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States? Answer -
Internal Revenue Service
The organization that develops worldwide accounting standards is the?
Answer - International Accounting Standards Board (IASB)
Standards established by the International Accounting Standards Board are
referred to as? Answer - International Financial Accounting Standards
Which of the following is NOT a service typically provided by large public
accounting firms? Answer - Making management decisions
Which of the following organizations has specific legal authority to establish
accounting standards for publicly held companies? Answer - Securities and
Exchange Commission (SEC)
Which of the following is NOT a reason for the integration of worldwide
accounting standards? Answer - The theoretical necessity of a common set of
accounting standards
The International Accounting Standards Board (IASB) is charged with
developing worldwide accounting practices? True or False? Answer - True
With the current state of information technology, investors outside a company
are now allowed access to a company's internal database of financial
,information and do their own customized analysis of a firm's performance.
True or False? Answer - False
While the technology may be available, companies are still not allowing
outsiders access to their internal accounting records. True or False? Answer -
True
Increased federal oversight of the audit process resulted from the passage of
the following act of Congress - Answer - Sarbanes-Oxley Act
A borrower benefits from providing financial information regarding income and
expenses in the form of a lower interest rate on the loan because of reduced
uncertainty for the lender with regard to repayment. True or False? Answer -
True
Which of the following is NOT one of the three primary financial statements?
Answer - The Statement of Retained Earnings
One reason for a company's preparing and providing financial statements is to
reduce uncertainty for an investor regarding the firm's future financial
performance. True or False? Answer - True
Which of the following distinguishes between current and long-term assets?
Answer - Classified balance sheet
Which of the following financial statements provides a picture of the enterprise
at a particular point in time? Answer - Balance sheet
, Which of the following is the reason that the accounting equation is true by
definition? Answer - Liabilities and owner's equity are the sources that fund
the purchase of assets
The idea that businesses must be accounted for as though they will exist at
least for the forseeable future is the? Answer - Going concern concept
Revenues cause? Answer - An increase in net assets
Which of the following is an overall measure of the performance of a business
entity's activities? Answer - Net income (or net loss)
The financial statement that presents a summary of the revenues and expenses
of a business for a specific period of time, such as a month or a year, is called
a(n)? Answer - Income Statement
Which of the following would be included on an income statement? Answer -
Rent expense
Another name for the income statement is? Answer - Statement of earnings
Which of the following classification does NOT appear on the Statement of
Cash Flows? Answer - Borrowing
Which of the following classifications refers to those activities whereby cash is
obtained or repaid to owners and creditors? Answer - Financing
Which of the following activities would NOT be classified as an investing
activity? Answer - Purchase of inventory
