WGU C213 Accounting for decision makers Study Guide Exam With Complete Solutions 2024.
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Course
Wgu C213
Institution
Wgu C213
1. Prepare 2. Analyze 3. Gather 4. Make decisions 5. Implement 6. Observe. - Answer Accounting steps.
Inside, Internal - Answer Managerial info is inside or outside the business?
True. Financial accounting is only outside. Managerial accounting can be inside AND outside. - Answer True o...
WGU C213 Accounting for decision makers Study Guide Exam With Complete Solutions 2024.
1. Prepare 2. Analyze 3. Gather 4. Make decisions 5. Implement 6. Observe. - Answer Accounting steps.
Inside, Internal - Answer Managerial info is inside or outside the business?
True. Financial accounting is only outside. Managerial accounting can be inside AND outside. - Answer True or false, managerial accounting uses BOTH managerial and financial accounting?
Outside, External, includes lenders and investors - Answer Financial is inside or outside the business?
Balance sheet, income statement, and statement of cash flows - Answer The financial statement includes what 3 documents
Balance Sheet - Answer Point in time, Assets (resources) and liabilities (obligations)
Income Statement - Answer Period of time (usually 1 year), amount of profit made
Statement of Cash flows - Answer Period of time, where money came from, and where it went. Inflow and outflow of cash (Cash Flows). Change in money for the period.
Balance sheet equation - Answer Assets= liabilities + equity
Revenue equation - Answer Net income=Revenue - Expenses Operating, investing, and financial activities - Answer The statement of cash flows includes what three activities
FASB: Financial accounting standards. Private, no government involvement. It is a public process, includes individuals experienced in business and accounting (7 members). - Answer The decision makers in the U.S. (accounting rules)
GAAP: General accepted accounting principles - Answer Developed by accounting rule makers. No Legal
authority.
comparability - Answer We need accounting rules for...
SEC: Security and exchange commission. Located in Article 1, Sec 8, Clause 3 - Answer U.S. gov agency responsible for ensuring that investors, creditors, and other financial statement users are provided with reliable information. It watches behavior in financial markets.
Registration statements (prospectus), Form 10-K, Form 10-Q, and schedule 14A (proxy statement). These
are all publicly viewable. - Answer What forms do the SEC regulate?
Oversees stock exchanges, can suspend a company, investigate and suspect violations of the SEC rules. - Answer What does the SEC do?
YES. The SEC has legal authority to establish accounting rules and disclosure requirements. - Answer Does the SEC have legal authority?
USA congress->SEC->FASB - Answer Financial accounting rule per the US constitution
FASB: Financial accounting standards board - Answer The SEC created the
GAAP (has no legal authority) - Answer FASB created AIPCA: American INSTITUTE of certified public accountants. - Answer What sets auditory standards, continue education credits, CPA exam, and is the code of professional conduct?
Only CPA's: Certified public accountants. - Answer Who is the only person who can sign audit reports?
PCAOB: Public company accounting oversight board. - Answer The Sarbanes-Oxley Act "SOX" created?
Under supervision of the SEC. - Answer PCAOB is under supervision of?
PCAOB: Public Company Accounting OVERSIGHT Board. - Answer Who appoints members, approves actions, gov standards, inspections, and investigations? It is a private group and OVERSEES. AUDITORS?
U.S. Gov agency that collects and regulates income taxes. Their primary goal is to collect revenue. - Answer IRS
Economic income and accounting income books. & Tax income, and cash flow books. - Answer There are two sets of books. Tax Books and Financial accounting books.
Similar to the FASB, but not 100% the same. It is international, everywhere but the U.S. - Answer IASB: Internatonal Accounting Standard Board
Who enforces and national policies. - Answer Barriers to international convergence are?
Condorsement - Answer Rules set centrally, but legally adopted and enforced locally?
The SEC, SOX, and PCAOB. - Answer To increase government regulation, one would use:
Reduce uncertainty and allows lenders and investors to target their financing and investing to the level of
risk they are willing to take. - Answer Financial statements
Adudit - Answer A financial statement that furthermore decreases uncertainty. Income Statement - Answer Provides accountants the best attempt at measuring the economic performance of a company.
Balance sheet - Answer Mother of all financial statements.
Accounting equation - Answer Assets=liabilities+equity
Assets (resoures) - Answer Resources owned or controlled by a company that will provide probable future economic benefit.
Liabilities (obligations) - Answer Obligations that require the probable future sacrifice of economic benefits in the form of the transfer of assets or the providing of services.
Equity - Answer Investment amount in the business PLUS how much profit they have left in the business. L-A=E
1 paid in capital, 2 retained earnings, 3 treasure stock, 4 accumulated other comprehensive income. - Answer Owners Equity
PIC: Paid in capital - Answer The amount originally paid in exchange for share of stock
Retained earnings - Answer CUMMULATIVE earnings that have been retained in the business
Treasury stock - Answer Company buys back its own shares of stock, shown as a subtraction from equity.
AOCI: Accumulated other comprehensive income.Market related gains and losses that are not included on the income statement. - Answer MARKET EVENTS that result in an increase or decrease in equity are:
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