BOMI- Budgeting and Accounting Final Exam 2023

Which key components make up the bookkeeping process? (2) - recording and classifying transactions is known as bookkeeping. Describe the roles filled by a accountant (3) - Accounting is a system of summarizing, interpreting, and communicating financial data. What are the primary functions associated with accounting ? (4) - Accounting is the next step in the process. Accounting is the system of summarizing, interpreting, and communicating financial data. Specify functions incorporated in the budgeting process. (4) - Budgeting is the ongoing process of coordinating resources and expenditures. Through this process, a plan is created with research and data as the foundation. The budget reflects the priorities of the business and the resources needed to accomplish them. - Describe the accounting cycle types most common to commercial real estate management business (5) - revenue cycle and the expenditure cycle What are the three summary account types ? (9) - assets, liabilities, and owner's equity—with each other as they increase and decrease with debits and credits. On the balance sheet, assets, liabilities, and owner's equity show the current status of the finances of the business or the building. - How are debits and credits applied to fundamental accounting equation ? (11-12) - liabilities and owner's equity normally have a credit balance a credit entry will increase the liability or owner's equity and a debit entry will decrease the liability or owner's equity assets -normally have a debit balance, a debit entry will increase the value of an asset, a credit entry will decrease the value of an asset - explain the relationship between the balance sheets and summary accounts (15) - The balance sheet is literally a statement of the balances, or amounts, within all of the assets, liabilities, and owner's equity summary accounts of the business. what are the generally accepted accounting principles ? (GAAP) (19) - Generally accepted accounting principles (GAAP) are a common set of accounting principles, standards, and procedures that companies use to record accounting data and compile their financial statements. GAAP is a combination of authoritative standards (set by policy boards), as well as commonly accepted ways of recording and reporting accounting information. - These standards are codified by the Financial Accounting Standards Board (FASB). What are international accounting standards ?(19) - Standards established and maintained by the International Accounting Standards Board, that are used by multi national companies What are internal reporting needs common to the real property industry?(20) - property industry internal reporting includes , tenant collections, vendor payments, and monthly operating results.