WGC C213 EXAM SCRIPT VERIFIED
QUESTIONS AND SOLUTIONS COMPLETE
REVIEW MATERIAL
●● Bookkeeping
Answer: the preservation of a systematic, quantitative record of an
activity
●● accounting system
Answer: 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
Answer: Info that is intended to be useful in making decisions about the
future.
●● The balance sheet, the income statement, and the statement of
cashflows
Answer: What are the three primary financial statements?
●● External Users
,Answer: Who is financial accounting information primarily prepared for
and used by?
●● Managerial Accounting
Answer: the name given to accounting systems designed for internal
users
●● Balance Sheet
Answer: Reports a company's assets, liabilities, and owners' equity
●● Income Statement
Answer: reports the amount of net income earned by a company during a
period
●● Net income
Answer: the excess of a company's revenues over its expenses
●● statement of cash flows
Answer: reports the amount of cash collected and paid out by a company
in the following three types of activities: operating, investing, and
financing
●● FASB
, Answer: Which private body establishes accounting rules in the U.S.?
●● Financial Accounting Standards Board (FASB)
Answer: 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)
Answer: 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)
Answer: the professional organization of certified public accountants
(CPAs) in the United States
●● Public Company Accounting Oversight Board (PCAOB)
Answer: 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)
QUESTIONS AND SOLUTIONS COMPLETE
REVIEW MATERIAL
●● Bookkeeping
Answer: the preservation of a systematic, quantitative record of an
activity
●● accounting system
Answer: 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
Answer: Info that is intended to be useful in making decisions about the
future.
●● The balance sheet, the income statement, and the statement of
cashflows
Answer: What are the three primary financial statements?
●● External Users
,Answer: Who is financial accounting information primarily prepared for
and used by?
●● Managerial Accounting
Answer: the name given to accounting systems designed for internal
users
●● Balance Sheet
Answer: Reports a company's assets, liabilities, and owners' equity
●● Income Statement
Answer: reports the amount of net income earned by a company during a
period
●● Net income
Answer: the excess of a company's revenues over its expenses
●● statement of cash flows
Answer: reports the amount of cash collected and paid out by a company
in the following three types of activities: operating, investing, and
financing
●● FASB
, Answer: Which private body establishes accounting rules in the U.S.?
●● Financial Accounting Standards Board (FASB)
Answer: 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)
Answer: 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)
Answer: the professional organization of certified public accountants
(CPAs) in the United States
●● Public Company Accounting Oversight Board (PCAOB)
Answer: 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)
