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WGU C213 Accounting Exam with
complete solutions latest version
Accounting - CORRECT ANSWER-the recording of the day-to-day financial
activities of a company and the organization of that information into summary
reports used to evaluate the company's financial status
Bookkeeping - CORRECT ANSWER-the preservation of a systematic, quantitative
record of an activity
accounting system - CORRECT 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 - CORRECT 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 -
CORRECT ANSWER-What are the three primary financial statements?
External Users - CORRECT ANSWER-Who is financial accounting information
primarily prepared for and used by?
Managerial Accounting - CORRECT ANSWER-the name given to accounting
systems designed for internal users
Balance Sheet - CORRECT ANSWER-Reports a company's assets, liabilities, and
owners' equity
Income Statement - CORRECT ANSWER-reports the amount of net income earned
by a company during a period
Net income - CORRECT ANSWER-the excess of a company's revenues over its
expenses
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statement of cash flows - CORRECT 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 - CORRECT ANSWER-Which private body establishes accounting rules in
the U.S.?
Financial Accounting Standards Board (FASB) - CORRECT 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) - CORRECT 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) - CORRECT ANSWER-
the professional organization of certified public accountants (CPAs) in the United
States
Public Company Accounting Oversight Board (PCAOB) - CORRECT 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) - CORRECT ANSWER-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
The International Accounting Standards Board (IASB) - CORRECT ANSWER-
Organization that was formed to develop a common set of worldwide accounting
standards. Its standards are increasingly accepted worldwide, but FASB rules are
still the standard in the United States.
1. Rapid Advancements in the IT field
2. the international integration of worldwide business
3. Increased scrutiny associated with large corporate accounting scandals -
CORRECT ANSWER-Which 3 factors have combined to make right now a time of
significant change in accounting?
Sarbanes-Oxley Act - CORRECT ANSWER-A wave of accounting scandals
starting in 2001 resulted in this act, which increases U.S. federal government
scrutiny of the production of financial statements.
BRAINSCAPE1
WGU C213 Accounting Exam with
complete solutions latest version
Accounting - CORRECT ANSWER-the recording of the day-to-day financial
activities of a company and the organization of that information into summary
reports used to evaluate the company's financial status
Bookkeeping - CORRECT ANSWER-the preservation of a systematic, quantitative
record of an activity
accounting system - CORRECT 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 - CORRECT 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 -
CORRECT ANSWER-What are the three primary financial statements?
External Users - CORRECT ANSWER-Who is financial accounting information
primarily prepared for and used by?
Managerial Accounting - CORRECT ANSWER-the name given to accounting
systems designed for internal users
Balance Sheet - CORRECT ANSWER-Reports a company's assets, liabilities, and
owners' equity
Income Statement - CORRECT ANSWER-reports the amount of net income earned
by a company during a period
Net income - CORRECT ANSWER-the excess of a company's revenues over its
expenses
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statement of cash flows - CORRECT 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 - CORRECT ANSWER-Which private body establishes accounting rules in
the U.S.?
Financial Accounting Standards Board (FASB) - CORRECT 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) - CORRECT 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) - CORRECT ANSWER-
the professional organization of certified public accountants (CPAs) in the United
States
Public Company Accounting Oversight Board (PCAOB) - CORRECT 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) - CORRECT ANSWER-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
The International Accounting Standards Board (IASB) - CORRECT ANSWER-
Organization that was formed to develop a common set of worldwide accounting
standards. Its standards are increasingly accepted worldwide, but FASB rules are
still the standard in the United States.
1. Rapid Advancements in the IT field
2. the international integration of worldwide business
3. Increased scrutiny associated with large corporate accounting scandals -
CORRECT ANSWER-Which 3 factors have combined to make right now a time of
significant change in accounting?
Sarbanes-Oxley Act - CORRECT ANSWER-A wave of accounting scandals
starting in 2001 resulted in this act, which increases U.S. federal government
scrutiny of the production of financial statements.
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