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1. Accounting the recording of the day-to-day financial activities of a com-
pany and the organization of that information into summary
reports used to evaluate the company's financial status
2. Bookkeeping the preservation of a systematic, quantitative record of an
activity
3. 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
4. Accounting information Info that is intended to be useful in making decisions about
the future.
5. The balance sheet, the income What are the three primary financial statements?
statement, and the statement of
cashflows
6. External Users Who is financial accounting information primarily prepared
for and used by?
7. Managerial Accounting the name given to accounting systems designed for internal
users
8. Balance Sheet Reports a company's assets, liabilities, and owners' equity
9. Income Statement reports the amount of net income earned by a company
during a period
10. Net income the excess of a company's revenues over its expenses
11. 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
, WGU C213 Accounting for Decision Makers
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12. FASB Which private body establishes accounting rules in the U.S.?
13. Financial Accounting Standards a private body established and supported by the joint efforts
Board (FASB) of the U.S. business community, financial analysts, and prac-
ticing accountants
14. The Securities and Exchange the organization that regulates U.S. stock exchanges and
Commission (SEC) 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
15. American Institute of Certified the professional organization of certified public accountants
Public Accountants (AICPA) (CPAs) in the United States
16. Public Company Accounting the organization that inspects the audit practices of regis-
Oversight Board (PCAOB) tered 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 com-
panies
17. 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
18. The International Accounting Organization that was formed to develop a common set
Standards Board (IASB) of worldwide accounting standards. Its standards are in-
creasingly accepted worldwide, but FASB rules are still the
standard in the United States.
19. 1. Rapid Advancements in the IT Which 3 factors have combined to make right now a time of
field significant change in accounting?