BOMI- BUDGETING AND ACCOUNTING
WITH 100% QUESTIONS AND ANSWERS.
Which key components make up the bookkeeping process? (2) - CORRECT ANSWERS✔️✔️recording
and classifying transactions is known as bookkeeping.
Describe the roles filled by a accountant (3) - CORRECT ANSWERS✔️✔A
️ ccounting is a system of
summarizing, interpreting, and communicating financial data.
What are the primary functions associated with accounting ? (4) - CORRECT ANSWERS✔️✔A ️ ccounting
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) - CORRECT ANSWERS✔️✔️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. -
CORRECT ANSWERS✔️✔️
Describe the accounting cycle types most common to commercial real estate management business (5) -
CORRECT ANSWERS✔️✔️revenue cycle and the expenditure cycle
What are the three summary account types ? (9) - CORRECT ANSWERS✔️✔a️ ssets, 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. - CORRECT ANSWERS✔️✔️
How are debits and credits applied to fundamental accounting equation ? (11-12) - CORRECT
ANSWERS✔️✔️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 - CORRECT ANSWERS✔️✔️
explain the relationship between the balance sheets and summary accounts (15) - CORRECT
ANSWERS✔️✔️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) - CORRECT
ANSWERS✔️✔️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. - CORRECT ANSWERS✔️✔T️ hese standards
are codified by the Financial Accounting Standards Board (FASB).
What are international accounting standards ?(19) - CORRECT ANSWERS✔️✔️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) - CORRECT
ANSWERS✔️✔️property industry internal reporting includes , tenant collections, vendor payments, and
monthly operating results.
Describe standard financial statements that businesses use? (20) - CORRECT ANSWERS✔️✔️These
financial statements consist of an income statements, a balance sheet, and a statement of cash
flows.The income statement shows revenues earned and expenses incurred in earning those revenues,
resulting in net income or net loss for the period.
What are common accounting methods used for recording financial transactions ? (21) - CORRECT
ANSWERS✔️✔️Accounting and financial reports can be prepared on a cash, accrual, or modified accrual
(also known as hybrid) accounting basis.
,When the cash method is used, income and expenses are recorded only when they are received or paid
out. This form of accounting is the most basic and has a cote focus on the actual timing of both cash
received and cash dispersed. - CORRECT ANSWERS✔️✔️
Explain accounting control strategies as they are used in real estate. (22) - CORRECT
ANSWERS✔️✔️control strategies place to detect fraud or theft but are primarily put in place to avoid
human error. strategies to avoid missed cash collection, or conversely excessive outflows that deplete
an owners cash. These include, collections, costs controls
Scenario - Chapter 1. Harold, an experienced finances manager for Beach Properties, hired Janet and is
reviewing the various aspects of budgeting and accounting that she will need to understand and
perform. - CORRECT ANSWERS✔️✔A ️ lthough she majored in finance at the local college, she lacks real
world experience. As Harold works with her over the next few weeks, he will seek to gauge her level of
understanding of budgeting and accounting fundamentals.
He will also have her perform some basic tasks. To the degree that she succeeds, she will move on to
more important and complicated projects. To the degree that she fails, Harold will provide additional
training and support. - CORRECT ANSWERS✔️✔️
"Janet, your main job function for the next few months will be to record and classify transactions" says
Harold. "In other words, you will be performing the process of..Blank..
a. accounting b. bookkeeping
c. budgeting d. financing - CORRECT ANSWERS✔️✔️b. bookkeeping
To the degree you are able to assume the role of accountant, Harold informs Janet, you'll engage in
many more functions. However you will not be responsible for ....Blank ... Financial data - CORRECT
ANSWERS✔️✔️B. memorizing
If Janet performs an accounting function, she will.. blank...financial data.
a. classify
b. identify
c. interpret
d. record - CORRECT ANSWERS✔️✔c️ . interpret
, remember Janet, that when we create our budget, we make a plan for the financing expenditures in
the ...Blank..., says Harold - CORRECT ANSWERS✔️✔️d. next year
At lunch, Janet tells a friend that some of the job functions she will be performing include acquiring
property, paying for it, and reporting on what is acquired and paid for. "Oh," her friend correctly notes,
"then you'll be involved in the....BLANK..cycle of accounting."
a. asset
b. control
c. revenue
d. expenditure - CORRECT ANSWERS✔️✔️d. expenditure
When Janet "balances the books" (or the summary accounts), she will basically be dealing with:
a. assets, liabilities, and owner's equity.
b. tax planning, revenues, and liabilities.
c. liabilities, budgets, and owner's equity.
d. owner's equity, capital, and tax planning. - CORRECT ANSWERS✔️✔️a. assets, liabilities, and owner's
equity
Janet," asks Harold, "if the company takes out a loan to make capital purchases, how would you record
this?" To be correct, Janet should record the money received as a________in Assets and as a__ in
Liabilities.
a. debit; debit
b. debit; credit
c. credit; debit
d. credit; credit - CORRECT ANSWERS✔️✔️b. debit; credit
Day after day, Janet records debits and credits for each entry to the balance sheet. This pro-
cess is referred to as accounting.
a. single-pass
b. double-pass
WITH 100% QUESTIONS AND ANSWERS.
Which key components make up the bookkeeping process? (2) - CORRECT ANSWERS✔️✔️recording
and classifying transactions is known as bookkeeping.
Describe the roles filled by a accountant (3) - CORRECT ANSWERS✔️✔A
️ ccounting is a system of
summarizing, interpreting, and communicating financial data.
What are the primary functions associated with accounting ? (4) - CORRECT ANSWERS✔️✔A ️ ccounting
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) - CORRECT ANSWERS✔️✔️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. -
CORRECT ANSWERS✔️✔️
Describe the accounting cycle types most common to commercial real estate management business (5) -
CORRECT ANSWERS✔️✔️revenue cycle and the expenditure cycle
What are the three summary account types ? (9) - CORRECT ANSWERS✔️✔a️ ssets, 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. - CORRECT ANSWERS✔️✔️
How are debits and credits applied to fundamental accounting equation ? (11-12) - CORRECT
ANSWERS✔️✔️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 - CORRECT ANSWERS✔️✔️
explain the relationship between the balance sheets and summary accounts (15) - CORRECT
ANSWERS✔️✔️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) - CORRECT
ANSWERS✔️✔️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. - CORRECT ANSWERS✔️✔T️ hese standards
are codified by the Financial Accounting Standards Board (FASB).
What are international accounting standards ?(19) - CORRECT ANSWERS✔️✔️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) - CORRECT
ANSWERS✔️✔️property industry internal reporting includes , tenant collections, vendor payments, and
monthly operating results.
Describe standard financial statements that businesses use? (20) - CORRECT ANSWERS✔️✔️These
financial statements consist of an income statements, a balance sheet, and a statement of cash
flows.The income statement shows revenues earned and expenses incurred in earning those revenues,
resulting in net income or net loss for the period.
What are common accounting methods used for recording financial transactions ? (21) - CORRECT
ANSWERS✔️✔️Accounting and financial reports can be prepared on a cash, accrual, or modified accrual
(also known as hybrid) accounting basis.
,When the cash method is used, income and expenses are recorded only when they are received or paid
out. This form of accounting is the most basic and has a cote focus on the actual timing of both cash
received and cash dispersed. - CORRECT ANSWERS✔️✔️
Explain accounting control strategies as they are used in real estate. (22) - CORRECT
ANSWERS✔️✔️control strategies place to detect fraud or theft but are primarily put in place to avoid
human error. strategies to avoid missed cash collection, or conversely excessive outflows that deplete
an owners cash. These include, collections, costs controls
Scenario - Chapter 1. Harold, an experienced finances manager for Beach Properties, hired Janet and is
reviewing the various aspects of budgeting and accounting that she will need to understand and
perform. - CORRECT ANSWERS✔️✔A ️ lthough she majored in finance at the local college, she lacks real
world experience. As Harold works with her over the next few weeks, he will seek to gauge her level of
understanding of budgeting and accounting fundamentals.
He will also have her perform some basic tasks. To the degree that she succeeds, she will move on to
more important and complicated projects. To the degree that she fails, Harold will provide additional
training and support. - CORRECT ANSWERS✔️✔️
"Janet, your main job function for the next few months will be to record and classify transactions" says
Harold. "In other words, you will be performing the process of..Blank..
a. accounting b. bookkeeping
c. budgeting d. financing - CORRECT ANSWERS✔️✔️b. bookkeeping
To the degree you are able to assume the role of accountant, Harold informs Janet, you'll engage in
many more functions. However you will not be responsible for ....Blank ... Financial data - CORRECT
ANSWERS✔️✔️B. memorizing
If Janet performs an accounting function, she will.. blank...financial data.
a. classify
b. identify
c. interpret
d. record - CORRECT ANSWERS✔️✔c️ . interpret
, remember Janet, that when we create our budget, we make a plan for the financing expenditures in
the ...Blank..., says Harold - CORRECT ANSWERS✔️✔️d. next year
At lunch, Janet tells a friend that some of the job functions she will be performing include acquiring
property, paying for it, and reporting on what is acquired and paid for. "Oh," her friend correctly notes,
"then you'll be involved in the....BLANK..cycle of accounting."
a. asset
b. control
c. revenue
d. expenditure - CORRECT ANSWERS✔️✔️d. expenditure
When Janet "balances the books" (or the summary accounts), she will basically be dealing with:
a. assets, liabilities, and owner's equity.
b. tax planning, revenues, and liabilities.
c. liabilities, budgets, and owner's equity.
d. owner's equity, capital, and tax planning. - CORRECT ANSWERS✔️✔️a. assets, liabilities, and owner's
equity
Janet," asks Harold, "if the company takes out a loan to make capital purchases, how would you record
this?" To be correct, Janet should record the money received as a________in Assets and as a__ in
Liabilities.
a. debit; debit
b. debit; credit
c. credit; debit
d. credit; credit - CORRECT ANSWERS✔️✔️b. debit; credit
Day after day, Janet records debits and credits for each entry to the balance sheet. This pro-
cess is referred to as accounting.
a. single-pass
b. double-pass
