C213 Accounting WGU (Updated Questions and Answers) A+ Graded 100%

C213 Accounting WGU (Updated Questions and Answers) A+ Graded 100% Accounting - ANS-a system of providing "quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions" AICPA - ANS-American Institute of Certified Public Accountants-the professional organization of certified public accountants in the united states Balance Sheet - ANS-document which reports the resources of a company (assets), the company's obligations (liabilities), and the owner's equity, which represents how much money has been invested in the company by its owners. Bookkeeping - ANS-The preservation of a systematic, quantitative record of an activity CPA - ANS-Certified Public Accountant-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 - ANS-the name given to accounting information provided for and used by external users FASB - ANS-Financial Accounting Standards Board - governmental body that sets accounting standards in the United States Financial Statements - ANS-the three primary financial information documents: the balance sheet, income statement, and statement of cash flows Income Statement - ANS-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 IRS - ANS-Internal Revenue Service m- the government agency responsible for tax collection and tax law enforcement IASB - ANS-International Accounting Standards Board - an independent, international body formed to develop worldwide accounting standards IFRS - ANS-International Financial Reporting Standards - the accounting standards produced by the IASB Managerial Accounting - ANS-the name given to accounting systems designed for internal users PCAOB - ANS-Public Company Accounting Oversight Board - a private, non-profit organization that effectively serves as an arm of the SEC in registering, inspecting, and disciplining the auditors of all publicly traded companies. Statement of Cash Flows - ANS-a document that reports the amount of cash collected and paid out by a company in the following three types of activities: operating, investing, and financing. Accounting Equation - ANS-assets = liabilities + owner's equity Accumulated Other Comprehensive Income - ANS-the source of theses increased assets Assets - ANS-the firm's economic resources, formally defined as "probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events" Balance Sheet - ANS-a statement of financial position - shows the financial resources the company owns or controls and the claims on those resources Book Value - ANS-the book value of an asset is the asset's cost minus the asset's accumulated depreciation Comparability - ANS-information that becomes much more useful when it can be related to a benchmark or standard Conservatism - ANS-a pervasive factor in accounting summarized as, when in doubt, recognize all losses but don't recognize any gains Consistency - ANS-the principle that, once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods Disclosure - ANS-Disclosure in the notes that accompany the financial statements is the accepted way to convey information to users when the information is too uncertain to be able to be boiled down into one concrete number EPS - ANS-Earnings per Share = tells the owner of one share of stock what she or she really wanted to know Entity Concept - ANS-the idea that personal financial activity is kept separate from business financial activity Expenses - ANS-the amount of assets consumed from the performance of business operations and thus are the opposite of revenues External Audit - ANS-audit conducted by external (independent) qualified accountants Financing Activities - ANS-those activities whereby cash is obtained from, or repaid to, owners and creditors