WGU C213 FINAL EXAM 2026 COMPLETE
QUESTIONS WITH ANSWERS
◉ Bookkeeping. Answer: Systematic quantitative record of an
activity.
◉ Accounting System. Answer: 1. Handle routine bookkeeping tasks.
2. Evaluate the performance and financial status of the business.
◉ Accounting Information. Answer: Used to make decisions about
the future
◉ Financial Accounting. Answer: Used by external users.
◉ Managerial Accounting. Answer: Accounting systems designed for
internal users.
◉ Balance Sheet. Answer: Reports a company's assets, liabilities, and
owner's equity.
◉ Income Statement. Answer: 1. Reports the amount of net income
earned by a company during a period.
,2. Reports gains and losses from activities outside a companies
normal operations.
◉ Single-step Income Statement. Answer: Groups the revenues and
expenses, and reports the overall difference as net income.
◉ Multi-step Income Statement. Answer: Emphasizes the
presentation of gross profit and operating income.
◉ Net Income. Answer: The excess of a company's revenues over its
expenses. Revenues, Expenses, Gains, Losses
◉ Statement of Cash Flows. Answer: Reports cash collected and paid
out by a company. Operating, Investing, Financing
◉ Financial Accounting Standards Board. Answer: Not Government,
Private body established by the US business community, financial
analysts, and practicing accountants, Has no legal power.
◉ Securities and Exchange Commission. Answer: Regulates US stock
exchanges
, ◉ Role of SEC. Answer: Makes sure investors are provided with
reliable information, Adds credibility, Requires certain reports, 10-Q
& 10-K, from companies.
◉ Public Company Accounting Oversight Board. Answer: Inspects
the audit practices, Has statutory authority to investigate
questionable audit practices, Can impose sanctions
◉ Trends of Accounting. Answer: Information technology,
integration of worldwide business, Increased scrutiny
◉ Constraints on Auditors (Sarbanes-Oxley). Answer: 1. Auditors
are prohibited from providing nonaudit services to audit clients.
2. Audit partners must rotate every five years.
3. Auditors must report to the audit committee of the board of
directors.
◉ Constraints on Management (Sarbanes-Oxley). Answer: 1. The
CEO and the CFO must personally certify the reliability of the
financial statements
2. Companies must have a code of ethics
3. Loans to company executives are prohibited
4. Audit committees must be strengthened
QUESTIONS WITH ANSWERS
◉ Bookkeeping. Answer: Systematic quantitative record of an
activity.
◉ Accounting System. Answer: 1. Handle routine bookkeeping tasks.
2. Evaluate the performance and financial status of the business.
◉ Accounting Information. Answer: Used to make decisions about
the future
◉ Financial Accounting. Answer: Used by external users.
◉ Managerial Accounting. Answer: Accounting systems designed for
internal users.
◉ Balance Sheet. Answer: Reports a company's assets, liabilities, and
owner's equity.
◉ Income Statement. Answer: 1. Reports the amount of net income
earned by a company during a period.
,2. Reports gains and losses from activities outside a companies
normal operations.
◉ Single-step Income Statement. Answer: Groups the revenues and
expenses, and reports the overall difference as net income.
◉ Multi-step Income Statement. Answer: Emphasizes the
presentation of gross profit and operating income.
◉ Net Income. Answer: The excess of a company's revenues over its
expenses. Revenues, Expenses, Gains, Losses
◉ Statement of Cash Flows. Answer: Reports cash collected and paid
out by a company. Operating, Investing, Financing
◉ Financial Accounting Standards Board. Answer: Not Government,
Private body established by the US business community, financial
analysts, and practicing accountants, Has no legal power.
◉ Securities and Exchange Commission. Answer: Regulates US stock
exchanges
, ◉ Role of SEC. Answer: Makes sure investors are provided with
reliable information, Adds credibility, Requires certain reports, 10-Q
& 10-K, from companies.
◉ Public Company Accounting Oversight Board. Answer: Inspects
the audit practices, Has statutory authority to investigate
questionable audit practices, Can impose sanctions
◉ Trends of Accounting. Answer: Information technology,
integration of worldwide business, Increased scrutiny
◉ Constraints on Auditors (Sarbanes-Oxley). Answer: 1. Auditors
are prohibited from providing nonaudit services to audit clients.
2. Audit partners must rotate every five years.
3. Auditors must report to the audit committee of the board of
directors.
◉ Constraints on Management (Sarbanes-Oxley). Answer: 1. The
CEO and the CFO must personally certify the reliability of the
financial statements
2. Companies must have a code of ethics
3. Loans to company executives are prohibited
4. Audit committees must be strengthened
