Accounting for Decision Makers - C213 Exam Study Guide with Complete Solutions

Accounting for Decision Makers - C213 Exam Study Guide with Complete Solutions 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 accountin