WGUl C213l Finall Examl (Latestl 2025/l 2026l Update)l Accountingl forl Decisionl Makersl Guide|l Questionsl &l Answers|l Gradel A|l 100%l Correctl (Verifiedl Solutions)
Q:l Describel thel purposel ofl accounting.
Answer:
Accountingl isl thel recordingl ofl thel day-to-dayl financiall activitiesl ofl al companyl andl thel organizationl ofl thatl informationl intol summaryl reportsl usedl tol evaluatel thel company'sl financiall status.Bookkeepingl isl al partl ofl accounting.l Bookkeepingl refersl tol thel processl ofl recordingl transactionsl intol variousl accounts,l whichl isl thel firstl stepl inl accounting.l Thel nextl stepl isl tol analyzel thel accountsl andl organizel theml intol financiall statementsl andl otherl usefull reports.
Q:l Describel thel threel financiall statements.
Answer:
Thel balancel sheetl reportsl al company'sl assets,l liabilities,l andl owners'l equity.l Itl reportsl thel financiall positionl ofl al firml atl al pointl inl time.
Thel incomel statementl reportsl thel amountl ofl netl incomel earnedl byl al companyl duringl al period.l Netl incomel isl thel excessl ofl al company'sl revenuesl overl itsl expenses.l Itl reportsl thel financiall performancel ofl al firml overl al periodl ofl time.
Thel statementl ofl cashl flowsl reportsl thel amountl ofl cashl collectedl andl paidl outl byl al companyl inl thel followingl threel typesl ofl activities:l operating,l investing,l andl financingl overl al periodl ofl time.
Q:l Lenders
Answer: 1 / 3
Banksl usel companies'l financiall statementsl inl makingl decisionsl aboutl commerciall loans.l Thel financiall statementsl arel usefull becausel theyl helpl thel lenderl predictl thel futurel abilityl ofl thel borrowerl tol repayl thel loan.
Q:l Investors
Answer:
Investorsl wantl informationl tol helpl theml estimatel howl muchl cashl theyl canl expectl tol directlyl receivel froml thel businessl inl thel futurel ifl theyl investl inl itl now.
Q:l Companyl Management
Answer:
Managersl usel financiall accountingl datal tol formulatel companyl goals,l tol computel bonusesl forl employees,l andl tol illuminatel companyl weaknesses.
Q:l Suppliersl andl Customers
Answer:
Suppliers,l customers,l andl employeesl usel financiall statementsl tol telll theml aboutl thel long-runl prospectsl ofl al company.
Q:l Employees
Answer:
Financiall statementl data,l asl mentionedl earlier,l arel usedl inl determiningl employeel bonuses.l Inl addition,l financiall accountingl informationl canl helpl anl employeel evaluatel thel employer'sl abilityl tol fulfilll itsl long-runl promises,l suchl asl forl pensionsl andl retireel healthl carel benefits.l Financiall statementsl arel alsol importantl inl contractl negotiationsl betweenl laborl andl management.
Q:l Competitors
Answer:
Competitorsl usel financiall accountingl informationl tol reveall strategicl opportunitiesl withinl theirl industry. 2 / 3
Q:l Governmentl Agencies
Answer:
Governmentl agenciesl usel financiall statementl datal tol bolsterl politicall andl regulatoryl positionsl forl andl againstl companies.
Q:l Politicians
Answer:
Politiciansl usel financiall statementl datal tol bolsterl politicall andl regulatoryl positionsl forl andl againstl companies.
Q:l Thel Press
Answer:
Reportersl usel financiall accountingl datal asl backgroundl informationl andl tol indicatel whichl companiesl arel undergoingl significantl changesl inl financiall status.
Q:l CPAl Accreditation
Answer:
Thel Americanl Institutel ofl Certifiedl Publicl Accountantsl (AICPA)l isl thel professionall organizationl ofl certifiedl publicl accountantsl (CPAs)l inl thel Unitedl States.l Al CPAl isl someonel whol hasl takenl al minimuml numberl ofl college-levell accountingl classes,l hasl passedl thel CPAl exam,l andl hasl metl otherl requirementsl setl byl hisl orl herl state.l Al CPAl firml isl al companyl thatl providesl freelancel businessl advice,l particularlyl inl connectionl withl accountingl issuesl andl executesl thel vastl majorityl ofl externall auditsl inl thel US.Thel AICPAl setsl ethicall standardsl forl CPAs,l providesl continuingl educationl forl them,l writesl andl gradesl thel CPAl exam,l lobbiesl forl legislationl favoredl byl CPAs,l andl providesl otherl supportl tol CPAs.l Itsl oversightl ofl thel CPAl examl isl itsl mainl rolel inl accreditation.l However,l tol bel accreditedl asl al CPAl youl mustl meetl thel requirementsl ofl thel statel inl whichl youl planl tol practice.l Thel requirementsl forl eachl statel arel setl byl thatl state'sl legislaturel andl overseenl byl thatl state'sl Boardl ofl Accountancy,l whichl isl al statel agency.
Q:l Publicl Companyl Accountingl Oversightl Boardl (PCAOB)
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