WGU C213 - Accounting Topic 1 Questions
With All Correct & Verified Answers
Accounting Correct answer-A system of providing "quantitative information, primarily financial in
nature, about economic entities that is intended to be useful in making economic decisions."
American Institute of Certified Public Accountants (AICPA) Correct answer-The professional
organization of certified public accountants in the United States
Balance Sheet Correct answer-Document which reports the resources of a company (the assets),
the company's obligations (the liabilities), and the owners' equity, which represents how much
money has been invested in the company by its owners
Bookkeeping Correct answer-The preservation of a systematic, quantitative record of an activity
Certified Public Accountant Correct answer-A person who has taken a minimum number of
college-level accounting classes, has passed the dreaded CPA exam, and has met other requirements
set by his or her state
Financial Accounting Correct answer-The name given to accounting information provided for and
used by external users
Financial Accounting Standards Board (FASB) Correct answer-Governmental body that sets
accounting standards in the United States.
Financial Statements Correct answer-The three primary financial information documents: the
balance sheet, income statement, and statement of cash flows
Income Statement Correct answer-This document reports the amount of net income earned by a
company during a period, with annual and quarterly income statements being the most common
Internal Revenue Service (IRS) Correct answer-The government agency responsible for tax
collection and tax law enforcement
International Accounting Standards Board (IASB) Correct answer-An independent, international
body formed to develop worldwide accounting standards
International Financial Reporting Standards (IFRS) Correct answer-The accounting standards
produced by the IASB
Managerial Accounting Correct answer-The name given to accounting systems designed for
internal users
Public Company Accounting Oversight Board (PCAOB) Correct answer-A private, non-profit
organization that effectively serves as an arm of the SEC in registering, inspecting, and disciplining
the auditors of all publicly traded companies
Statement of Cash Flows Correct answer-This document reports the amount of cash collected and
paid out by a company in the following three types of activities: operating, investing, and financing
With All Correct & Verified Answers
Accounting Correct answer-A system of providing "quantitative information, primarily financial in
nature, about economic entities that is intended to be useful in making economic decisions."
American Institute of Certified Public Accountants (AICPA) Correct answer-The professional
organization of certified public accountants in the United States
Balance Sheet Correct answer-Document which reports the resources of a company (the assets),
the company's obligations (the liabilities), and the owners' equity, which represents how much
money has been invested in the company by its owners
Bookkeeping Correct answer-The preservation of a systematic, quantitative record of an activity
Certified Public Accountant Correct answer-A person who has taken a minimum number of
college-level accounting classes, has passed the dreaded CPA exam, and has met other requirements
set by his or her state
Financial Accounting Correct answer-The name given to accounting information provided for and
used by external users
Financial Accounting Standards Board (FASB) Correct answer-Governmental body that sets
accounting standards in the United States.
Financial Statements Correct answer-The three primary financial information documents: the
balance sheet, income statement, and statement of cash flows
Income Statement Correct answer-This document reports the amount of net income earned by a
company during a period, with annual and quarterly income statements being the most common
Internal Revenue Service (IRS) Correct answer-The government agency responsible for tax
collection and tax law enforcement
International Accounting Standards Board (IASB) Correct answer-An independent, international
body formed to develop worldwide accounting standards
International Financial Reporting Standards (IFRS) Correct answer-The accounting standards
produced by the IASB
Managerial Accounting Correct answer-The name given to accounting systems designed for
internal users
Public Company Accounting Oversight Board (PCAOB) Correct answer-A private, non-profit
organization that effectively serves as an arm of the SEC in registering, inspecting, and disciplining
the auditors of all publicly traded companies
Statement of Cash Flows Correct answer-This document reports the amount of cash collected and
paid out by a company in the following three types of activities: operating, investing, and financing
