AHLEI Final Exam Solved 100% Correct

Why is it important that you, a hospitality student or professional, study accounting? - ANSWER-As a user of financial information, you need to know how the information is processed and how reports are prepared. The fundamental purpose of accounting is to: - ANSWER-provide accurate, useful, and timely financial information. The fundamental accounting equation is: - ANSWER-assets = liabilities + equity In the double-entry system of accounting: - ANSWER-equal dollar amounts of debits and credits must be entered for each business transaction. The Hospitality Financial & Technology Professionals serves its membership by: - ANSWER-providing training sessions on hospitality accounting and technology and conducting professional development seminars for clubs, gaming operations, and other areas of special interest. In a corporation business form: - ANSWER-profits are retained in the corporation, with shareholders receiving dividends at the discretion of the board of directors. How is a business's income tax computed? - ANSWER-taxable income multiplied by an applicable tax rate Which of the following best describes par value of a corporation's stock? - ANSWER-It is an established value for a company's stock, generally very low, below which the stock cannot be originally issued. Which of the following statements regarding the partnership form of business is true? - ANSWER-It may have any number of limited partners. Forming a corporation is a legal procedure performed by: - ANSWER-filing articles of incorporation with the secretary of corporation's office in the corporation's home state. The financial document that provides information about the results of a company's operations for a period of time is the: - ANSWER-statement of income. The purpose of a balance sheet is to: - ANSWER-show the financial position of a company on a given date. Which of the following are the basic financial statements prepared by hospitality businesses? - ANSWER-statement of income, equity statement, balance sheet, statement of cash flows.