STUDY GUIDE WGU C213 PA & OA STUDY GUIDE LATEST
VERSION UPDATED AND REVISED IN 2025
Which of the following is the most correct definition
of accounting? - ANSWER ->A system for providing
quantitative information, primarily financial in
nature, about economic entities that is intended to
be useful in making economic decisions
What is NOT typically true of accounting
information? - ANSWER ->The information relates
to future time periods.
Which is NOT a key component of the definition of
accounting? - ANSWER ->Qualitative
What is true about the double-entry system of
bookkeeping? - ANSWER ->It was developed in the
1300s−1400s in Italy.
,Businesses use accounting systems to - ANSWER -
>Analyze transactions; Handle routine bookkeeping
tasks; Evaluate performance and health of the
business.
What is not a function of accounting? - ANSWER -
>Executing sales transactions for organizations
What is NOT one of the three primary financial
statements? - ANSWER ->Statement of retained
earnings
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 organizations has specific
legal authority to establish accounting standards for
,publicly held companies? - ANSWER ->Securities
and Exchange Commission (SEC)
Which is NOT a service typically provided by large
public accounting firms? - ANSWER ->Making
management decisions
The organization that develops worldwide
accounting standards is the - ANSWER -
>International Accounting Standards Board (IASB)
The initials CPA stand for - ANSWER ->Certified
Public Accountant
Which of the following financial statements reports
a company's resources, obligations, and owner's
equity? - ANSWER ->Balance sheet
Which of the following financial statements reports
the excess of a company's revenues over its
expenses? - ANSWER ->Income statement
, Which of the following financial statements reports
the amount of cash collected and paid out by a
company? - ANSWER ->Statement of cash flows
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
VERSION UPDATED AND REVISED IN 2025
Which of the following is the most correct definition
of accounting? - ANSWER ->A system for providing
quantitative information, primarily financial in
nature, about economic entities that is intended to
be useful in making economic decisions
What is NOT typically true of accounting
information? - ANSWER ->The information relates
to future time periods.
Which is NOT a key component of the definition of
accounting? - ANSWER ->Qualitative
What is true about the double-entry system of
bookkeeping? - ANSWER ->It was developed in the
1300s−1400s in Italy.
,Businesses use accounting systems to - ANSWER -
>Analyze transactions; Handle routine bookkeeping
tasks; Evaluate performance and health of the
business.
What is not a function of accounting? - ANSWER -
>Executing sales transactions for organizations
What is NOT one of the three primary financial
statements? - ANSWER ->Statement of retained
earnings
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 organizations has specific
legal authority to establish accounting standards for
,publicly held companies? - ANSWER ->Securities
and Exchange Commission (SEC)
Which is NOT a service typically provided by large
public accounting firms? - ANSWER ->Making
management decisions
The organization that develops worldwide
accounting standards is the - ANSWER -
>International Accounting Standards Board (IASB)
The initials CPA stand for - ANSWER ->Certified
Public Accountant
Which of the following financial statements reports
a company's resources, obligations, and owner's
equity? - ANSWER ->Balance sheet
Which of the following financial statements reports
the excess of a company's revenues over its
expenses? - ANSWER ->Income statement
, Which of the following financial statements reports
the amount of cash collected and paid out by a
company? - ANSWER ->Statement of cash flows
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
