Exam (elaborations)
Accounting for decision makers C213 WGU Questions And Answers.
- Course
- C213 Accounting
- Institution
- Western Governors University
Accounting for decision makers C213 WGU Questions And Answers.
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Accounting for decision makers C213 WGUQuestions And Answers
1. vPrepare v2. vAnalyze v3. vGather v4. vMake vdecisions v5. vImplement v6. vObserve. v-
vANS-Accounting vsteps.
Inside, vInternal v- vANS-Managerial vinfo vis vinside vor voutside vthe vbusiness?
True. vFinancial vaccounting vis vonly voutside. vManagerial vaccounting vcan vbe vinside
vAND voutside. v- vANS-True vor vfalse, vmanagerial vaccounting vuses vBOTH vmanagerial
vand vfinancial vaccounting?
Outside, vExternal, vincludes vlenders vand vinvestors v- vANS-Financial vis vinside vor
voutside vthe vbusiness?
Balance vsheet, vincome vstatement, vand vstatement vof vcash vflows v- vANS-The
vfinancial vstatement vincludes vwhat v3 vdocuments
Balance vSheet v- vANS-Point vin vtime, vAssets v(resources) vand vliabilities v(obligations)
Income vStatement v- vANS-Period vof vtime v(usually v1 vyear), vamount vof vprofit vmade
Statement vof vCash vflows v- vANS-Period vof vtime, vwhere vmoney vcame vfrom, vand
vwhere vit vwent. vInflow vand voutflow vof vcash v(Cash vFlows). vChange vin vmoney vfor
vthe vperiod.
Balance vsheet vequation v- vANS-Assets= vliabilities v+ vequity
Revenue vequation v- vANS-Net vincome=Revenue v- vExpenses
Operating, vinvesting, vand vfinancial vactivities v- vANS-The vstatement vof vcash vflows
vincludes vwhat vthree vactivities
FASB: vFinancial vaccounting vstandards. vPrivate, vno vgovernment vinvolvement. vIt vis va
vpublic vprocess, vincludes vindividuals vexperienced vin vbusiness vand vaccounting v(7
vmembers). v- vANS-The vdecision vmakers vin vthe vU.S. v(accounting vrules)
GAAP: vGeneral vaccepted vaccounting vprinciples v- vANS-Developed vby vaccounting
vrule vmakers. vNo vLegal vauthority.
comparability v- vANS-We vneed vaccounting vrules vfor...
,SEC: vSecurity vand vexchange vcommission. vLocated vin vArticle v1, vSec v8, vClause v3 v-
vANS-U.S. vgov vagency vresponsible vfor vensuring vthat vinvestors, vcreditors, vand vother
vfinancial vstatement vusers vare vprovided vwith vreliable vinformation. vIt vwatches
vbehavior vin vfinancial vmarkets.
Registration vstatements v(prospectus), vForm v10-K, vForm v10-Q, vand vschedule v14A
v(proxy vstatement). vThese vare vall vpublicly vviewable. v- vANS-What vforms vdo vthe
vSEC vregulate?
Oversees vstock vexchanges, vcan vsuspend va vcompany, vinvestigate vand vsuspect
vviolations vof vthe vSEC vrules. v- vANS-What vdoes vthe vSEC vdo?
YES. vThe vSEC vhas vlegal vauthority vto vestablish vaccounting vrules vand vdisclosure
vrequirements. v- vANS-Does vthe vSEC vhave vlegal vauthority?
USA vcongress->SEC->FASB v- vANS-Financial vaccounting vrule vper vthe vUS
vconstitution
FASB: vFinancial vaccounting vstandards vboard v- vANS-The vSEC vcreated vthe
GAAP v(has vno vlegal vauthority) v- vANS-FASB vcreated
AIPCA: vAmerican vINSTITUTE vof vcertified vpublic vaccountants. v- vANS-What vsets
vauditory vstandards, vcontinue veducation vcredits, vCPA vexam, vand vis vthe vcode vof
vprofessional vconduct?
Only vCPA's: vCertified vpublic vaccountants. v- vANS-Who vis vthe vonly vperson vwho vcan
vsign vaudit vreports?
PCAOB: vPublic vcompany vaccounting voversight vboard. v- vANS-The vSarbanes-Oxley
vAct v"SOX" vcreated?
Under vsupervision vof vthe vSEC. v- vANS-PCAOB vis vunder vsupervision vof?
PCAOB: vPublic vCompany vAccounting vOVERSIGHT vBoard. v- vANS-Who vappoints
vmembers, vapproves vactions, vgov vstandards, vinspections, vand vinvestigations? vIt vis
va vprivate vgroup vand vOVERSEES. vAUDITORS?
U.S. vGov vagency vthat vcollects vand vregulates vincome vtaxes. vTheir vprimary vgoal vis
vto vcollect vrevenue. v- vANS-IRS
Economic vincome vand vaccounting vincome vbooks. v& vTax vincome, vand vcash vflow
vbooks. v- vANS-There vare vtwo vsets vof vbooks. vTax vBooks vand vFinancial vaccounting
vbooks.
,Similar vto vthe vFASB, vbut vnot v100% vthe vsame. vIt vis vinternational, veverywhere vbut
vthe vU.S. v- vANS-IASB: vInternatonal vAccounting vStandard vBoard
Who venforces vand vnational vpolicies. v- vANS-Barriers vto vinternational vconvergence
vare?
Condorsement v- vANS-Rules vset vcentrally, vbut vlegally vadopted vand venforced
vlocally?
The vSEC, vSOX, vand vPCAOB. v- vANS-To vincrease vgovernment vregulation, vone
vwould vuse:
Reduce vuncertainty vand vallows vlenders vand vinvestors vto vtarget vtheir vfinancing vand
vinvesting vto vthe vlevel vof vrisk vthey vare vwilling vto vtake. v- vANS-Financial vstatements
Adudit v- vANS-A vfinancial vstatement vthat vfurthermore vdecreases vuncertainty.
Income vStatement v- vANS-Provides vaccountants vthe vbest vattempt vat vmeasuring vthe
veconomic vperformance vof va vcompany.
Balance vsheet v- vANS-Mother vof vall vfinancial vstatements.
Accounting vequation v- vANS-Assets=liabilities+equity
Assets v(resoures) v- vANS-Resources vowned vor vcontrolled vby va vcompany vthat vwill
vprovide vprobable vfuture veconomic vbenefit.
Liabilities v(obligations) v- vANS-Obligations vthat vrequire vthe vprobable vfuture vsacrifice
vof veconomic vbenefits vin vthe vform vof vthe vtransfer vof vassets vor vthe vproviding vof
vservices.
Equity v- vANS-Investment vamount vin vthe vbusiness vPLUS vhow vmuch vprofit vthey
vhave vleft vin vthe vbusiness. vL-A=E
1 vpaid vin vcapital, v2 vretained vearnings, v3 vtreasure vstock, v4 vaccumulated vother
vcomprehensive vincome. v- vANS-Owners vEquity
PIC: vPaid vin vcapital v- vANS-The vamount voriginally vpaid vin vexchange vfor vshare vof
vstock
Retained vearnings v- vANS-CUMMULATIVE vearnings vthat vhave vbeen vretained vin vthe
vbusiness
Treasury vstock v- vANS-Company vbuys vback vits vown vshares vof vstock, vshown vas va
vsubtraction vfrom vequity.
, AOCI: vAccumulated vother vcomprehensive vincome.Market vrelated vgains vand vlosses
vthat vare vnot vincluded von vthe vincome vstatement. v- vANS-MARKET vEVENTS vthat
vresult vin van vincrease vor vdecrease vin vequity vare:
Classified vbalance vsheet v- vANS-Breaking vitems vdown vinto vcurrent vand vlong vterm
vresults v(current=with vin vone vyear)
Entity vConcept v- vANS-small vand vlarge vbusinesses
International vProperty vrules v- vANS-What vallows vproperty, vplant, vand vequipment
v(PPE) vto vbe vreported vat vCURRENT vAPPRISED vVALUE vrather vthan vhistorical
vcost?
NO v- vANS-Are vassets vrecorded vat vliquidity vprices?
Revenue, vexpenses, vand vnet vincome. v- vANS-The vincome vstatement vcontains vwhat
vthree vthings?
Income vstatement vequation v- vANS-Revenue-Expenses=Net vIncome
Revenue v(gains) v- vANS-Amount vof vassets vcreated vfrom vthe vsale vof vgoods vor
vservices. vAlso, vREVENUE vCAN vBE vGENERATED vBY vSATISFYING vLIABILITIES.
vOne vSOURCE vof van vasset.
Expenses v(losses) v- vANS-Amnt vof vASSETS vCONSUMED vin vgenerating vrevenues.
vExpenses vare valso vused vwhen vliabilities vare vcreated vin vgenerating vrevenues. vone
vUSE vof van vasset. vIt vis vONE vway vto vcreate va vliability.
NEVER. vDivedends vare vnot vexpenses. v- vANS-Are vDividends vlocated von vthe
vincome vstatement?
Net vincome v- vANS-Overall vmeasure vof va vcompanies veconomic vperformance vduring
va vperiod vof vtime.
Never v- vANS-Are vrevenues vassets?
Never v- vANS-Are vexpenses vliabilities?
Earnings vper vshare v(EPS) v- vANS-Net vincome v/ voutstanding vnumber vof vshare
vstock.
Revenue vrecognition v- vANS-Recognize vrevenue vwhen vvalue vhas vbeen vdelivered vto
vthe vcustomers. vNot vbefore vor vafter.
Operating, vinvesting, vand vfinancing vactivities v- vANS-Statement vof vcash vflows.
vInflow vof vcash vcomes vfrom vwhat vthree vactivities.
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