Exam (elaborations)
Exam (elaborations) CPA - Certified Public Accountant
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Updated Accounting C213 WGU 2025
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Accounting for Decision Makers -C213 Accurate Study Questions and
Answers.
Numbers - CORRECT ANSWER✅✅✅Accounting is quantitative
Balance Sheet - CORRECT ANSWER✅✅✅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.
Income Statement - CORRECT ANSWER✅✅✅reports the amount of net income earned by
a company during a period, with annual and quarterly income statements being the most
common.
The company has suffered a loss - CORRECT ANSWER✅✅✅if the expenses are more than
the revenues then
Income Statement - CORRECT ANSWER✅✅✅represents the accountant's best effort at
measuring the economic performance of a company.
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.
Statement of Cash Flows - CORRECT ANSWER✅✅✅is the most objective of the financial
statements because, as you will see in subsequent chapters, it involves a minimum of accounting
estimates and judgments.
,Lenders - CORRECT ANSWER✅✅✅are interested in one thing—being repaid with
interest.
Investors - CORRECT ANSWER✅✅✅want information to help them estimate how much
cash they can expect to directly receive from the business in the future if they invest in it now.
Investors and creditors - CORRECT ANSWER✅✅✅The emphasis in financial accounting
is on which of the following external user groups?
Financial Accounting Standards Board (FASB) - CORRECT ANSWER✅✅✅the United
States, accounting standards are set by
FASB - CORRECT ANSWER✅✅✅is not a government agency; it is a private body
established and supported by the joint efforts of the U.S. business community, financial analysts,
and practicing accountants.
Developed by accounting rule makers - CORRECT ANSWER✅✅✅Generally accepted
accounting principles are
Securities and Exchange Commission (SEC) - CORRECT ANSWER✅✅✅regulates U.S.
stock exchanges
SEC - CORRECT ANSWER✅✅✅makes sure that investors are provided with full and fair
information about publicly traded companies.
SEC - CORRECT ANSWER✅✅✅has been granted by Congress specific legal authority to
establish accounting standards for companies soliciting investment funds
American Institute of Certified Public Accountants (AICPA) - CORRECT
ANSWER✅✅✅is the professional organizations of certified public accountants in the
United States.
, AICPA - CORRECT ANSWER✅✅✅provides continuing educational service to its
members and also acts as a political voice to lobby on behalf of its membership.
CPA - CORRECT ANSWER✅✅✅are also hired to perform independent audits of a
company's financial statements.
Sarbanes-Oxley Act created - CORRECT ANSWER✅✅✅the Public Company Accounting
Oversight Board (PCAOB).
International Accounting Standards Board (IASB) - CORRECT ANSWER✅✅✅was formed
in 1973 to develop worldwide accounting standards.
International Financial Reporting Standards (IFRS). - CORRECT
ANSWER✅✅✅accounting standards produced by the IASB are referred to as International
Financial Reporting Standards (IFRS).
NOT a service typically provided by large public accounting firms? - CORRECT
ANSWER✅✅✅Making management decisions
Securities and Exchange Commission (SEC) - CORRECT ANSWER✅✅✅has specific legal
authority to establish accounting standards for publicly held companies?
The International Accounting Standards Board (IASB) - CORRECT ANSWER✅✅✅is
charged with developing worldwide accounting practices
Sarbanes-Oxley Act - CORRECT ANSWER✅✅✅Increased federal oversight of the audit
process resulted from the passage of the following act of Congress
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