Accounting for decision makers C213 WGU || Correct Answers
100%.
1. Prepare 2. Analyze 3. Gather 4. Make decisions 5. Implement 6. Observe. correct answers
Accounting steps.
Inside, Internal correct answers Managerial info is inside or outside the business?
True. Financial accounting is only outside. Managerial accounting can be inside AND outside.
correct answers True or false, managerial accounting uses BOTH managerial and financial
accounting?
Outside, External, includes lenders and investors correct answers Financial is inside or outside
the business?
Balance sheet, income statement, and statement of cash flows correct answers The financial
statement includes what 3 documents
Balance Sheet correct answers Point in time, Assets (resources) and liabilities (obligations)
Income Statement correct answers Period of time (usually 1 year), amount of profit made
Statement of Cash flows correct answers Period of time, where money came from, and where it
went. Inflow and outflow of cash (Cash Flows). Change in money for the period.
Balance sheet equation correct answers Assets= liabilities + equity
Revenue equation correct answers Net income=Revenue - Expenses
,Operating, investing, and financial activities correct answers The statement of cash flows
includes what three activities
FASB: Financial accounting standards. Private, no government involvement. It is a public
process, includes individuals experienced in business and accounting (7 members). correct
answers The decision makers in the U.S. (accounting rules)
GAAP: General accepted accounting principles correct answers Developed by accounting rule
makers. No Legal authority.
comparability correct answers We need accounting rules for...
SEC: Security and exchange commission. Located in Article 1, Sec 8, Clause 3 correct answers
U.S. gov agency responsible for ensuring that investors, creditors, and other financial statement
users are provided with reliable information. It watches behavior in financial markets.
Registration statements (prospectus), Form 10-K, Form 10-Q, and schedule 14A (proxy
statement). These are all publicly viewable. correct answers What forms do the SEC regulate?
Oversees stock exchanges, can suspend a company, investigate and suspect violations of the SEC
rules. correct answers What does the SEC do?
YES. The SEC has legal authority to establish accounting rules and disclosure requirements.
correct answers Does the SEC have legal authority?
USA congress->SEC->FASB correct answers Financial accounting rule per the US constitution
FASB: Financial accounting standards board correct answers The SEC created the
GAAP (has no legal authority) correct answers FASB created
,AIPCA: American INSTITUTE of certified public accountants. correct answers What sets
auditory standards, continue education credits, CPA exam, and is the code of professional
conduct?
Only CPA's: Certified public accountants. correct answers Who is the only person who can sign
audit reports?
PCAOB: Public company accounting oversight board. correct answers The Sarbanes-Oxley Act
"SOX" created?
Under supervision of the SEC. correct answers PCAOB is under supervision of?
PCAOB: Public Company Accounting OVERSIGHT Board. correct answers Who appoints
members, approves actions, gov standards, inspections, and investigations? It is a private group
and OVERSEES. AUDITORS?
U.S. Gov agency that collects and regulates income taxes. Their primary goal is to collect
revenue. correct answers IRS
Economic income and accounting income books. & Tax income, and cash flow books. correct
answers There are two sets of books. Tax Books and Financial accounting books.
Similar to the FASB, but not 100% the same. It is international, everywhere but the U.S. correct
answers IASB: Internatonal Accounting Standard Board
Who enforces and national policies. correct answers Barriers to international convergence are?
Condorsement correct answers Rules set centrally, but legally adopted and enforced locally?
, The SEC, SOX, and PCAOB. correct answers To increase government regulation, one would
use:
Reduce uncertainty and allows lenders and investors to target their financing and investing to the
level of risk they are willing to take. correct answers Financial statements
Adudit correct answers A financial statement that furthermore decreases uncertainty.
Income Statement correct answers Provides accountants the best attempt at measuring the
economic performance of a company.
Balance sheet correct answers Mother of all financial statements.
Accounting equation correct answers Assets=liabilities+equity
Assets (resoures) correct answers Resources owned or controlled by a company that will provide
probable future economic benefit.
Liabilities (obligations) correct answers Obligations that require the probable future sacrifice of
economic benefits in the form of the transfer of assets or the providing of services.
Equity correct answers Investment amount in the business PLUS how much profit they have left
in the business. L-A=E
1 paid in capital, 2 retained earnings, 3 treasure stock, 4 accumulated other comprehensive
income. correct answers Owners Equity
PIC: Paid in capital correct answers The amount originally paid in exchange for share of stock
100%.
1. Prepare 2. Analyze 3. Gather 4. Make decisions 5. Implement 6. Observe. correct answers
Accounting steps.
Inside, Internal correct answers Managerial info is inside or outside the business?
True. Financial accounting is only outside. Managerial accounting can be inside AND outside.
correct answers True or false, managerial accounting uses BOTH managerial and financial
accounting?
Outside, External, includes lenders and investors correct answers Financial is inside or outside
the business?
Balance sheet, income statement, and statement of cash flows correct answers The financial
statement includes what 3 documents
Balance Sheet correct answers Point in time, Assets (resources) and liabilities (obligations)
Income Statement correct answers Period of time (usually 1 year), amount of profit made
Statement of Cash flows correct answers Period of time, where money came from, and where it
went. Inflow and outflow of cash (Cash Flows). Change in money for the period.
Balance sheet equation correct answers Assets= liabilities + equity
Revenue equation correct answers Net income=Revenue - Expenses
,Operating, investing, and financial activities correct answers The statement of cash flows
includes what three activities
FASB: Financial accounting standards. Private, no government involvement. It is a public
process, includes individuals experienced in business and accounting (7 members). correct
answers The decision makers in the U.S. (accounting rules)
GAAP: General accepted accounting principles correct answers Developed by accounting rule
makers. No Legal authority.
comparability correct answers We need accounting rules for...
SEC: Security and exchange commission. Located in Article 1, Sec 8, Clause 3 correct answers
U.S. gov agency responsible for ensuring that investors, creditors, and other financial statement
users are provided with reliable information. It watches behavior in financial markets.
Registration statements (prospectus), Form 10-K, Form 10-Q, and schedule 14A (proxy
statement). These are all publicly viewable. correct answers What forms do the SEC regulate?
Oversees stock exchanges, can suspend a company, investigate and suspect violations of the SEC
rules. correct answers What does the SEC do?
YES. The SEC has legal authority to establish accounting rules and disclosure requirements.
correct answers Does the SEC have legal authority?
USA congress->SEC->FASB correct answers Financial accounting rule per the US constitution
FASB: Financial accounting standards board correct answers The SEC created the
GAAP (has no legal authority) correct answers FASB created
,AIPCA: American INSTITUTE of certified public accountants. correct answers What sets
auditory standards, continue education credits, CPA exam, and is the code of professional
conduct?
Only CPA's: Certified public accountants. correct answers Who is the only person who can sign
audit reports?
PCAOB: Public company accounting oversight board. correct answers The Sarbanes-Oxley Act
"SOX" created?
Under supervision of the SEC. correct answers PCAOB is under supervision of?
PCAOB: Public Company Accounting OVERSIGHT Board. correct answers Who appoints
members, approves actions, gov standards, inspections, and investigations? It is a private group
and OVERSEES. AUDITORS?
U.S. Gov agency that collects and regulates income taxes. Their primary goal is to collect
revenue. correct answers IRS
Economic income and accounting income books. & Tax income, and cash flow books. correct
answers There are two sets of books. Tax Books and Financial accounting books.
Similar to the FASB, but not 100% the same. It is international, everywhere but the U.S. correct
answers IASB: Internatonal Accounting Standard Board
Who enforces and national policies. correct answers Barriers to international convergence are?
Condorsement correct answers Rules set centrally, but legally adopted and enforced locally?
, The SEC, SOX, and PCAOB. correct answers To increase government regulation, one would
use:
Reduce uncertainty and allows lenders and investors to target their financing and investing to the
level of risk they are willing to take. correct answers Financial statements
Adudit correct answers A financial statement that furthermore decreases uncertainty.
Income Statement correct answers Provides accountants the best attempt at measuring the
economic performance of a company.
Balance sheet correct answers Mother of all financial statements.
Accounting equation correct answers Assets=liabilities+equity
Assets (resoures) correct answers Resources owned or controlled by a company that will provide
probable future economic benefit.
Liabilities (obligations) correct answers Obligations that require the probable future sacrifice of
economic benefits in the form of the transfer of assets or the providing of services.
Equity correct answers Investment amount in the business PLUS how much profit they have left
in the business. L-A=E
1 paid in capital, 2 retained earnings, 3 treasure stock, 4 accumulated other comprehensive
income. correct answers Owners Equity
PIC: Paid in capital correct answers The amount originally paid in exchange for share of stock
