2025 Accounting - Questions and Answers
1.The fundamental purpose of accounting is:: To provide accurate, useful
and timely financial information
2.What are some examples of external and internal users of financial
state- ments?: Internal users:
Accountants,managers,employees,officers,workers.. External users:
Investors, governments, banks...
3.In the double-entry system of accounting:: Equal dollar amounts of
debits and credits must be entered for each business transaction.
4.The fundamental accounting equation is:: Assets = Liabilities + Equity.
5.By following generally accepted accounting principles ( GAAP ), an
accoun- tant... :: Helps to ensure that consistent accounting procedures
are observed across the accounting profession.
6.Which generally accepted accounting principle states that, once an ac-
counting method has been adopted, it should be consistently followed
from period to period?: Consistency
7.What is the definition of a business transaction?: Exchange of
something against something else: you give up something, you get
something else in return.
8.What is the difference between accounting and bookkeeping?:
Bookkeeping is the initial phase of accounting; collect the information
and record the transactions. The accountant supervises the
bookkeeping tasks and makes the financial reports.
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, 9.What are the eleven generally accepted accounting principles
presented in this chapter?: Matching principles, Objectivity principle,
Cost principles, Full Disclosure,Monetary Unit Principle..
10.What are the definitions of accounts receivable and accounts payable?: -
Account receivable is an asset, and accounts payable is a debt.
11.Why is it important that we, hospitality students, know some stuff about
accounting?: As a user of financial information, you ned to know how
the informa- tion is processed and how reports are made/prepared.
12.An audit investigation and subsequent attest function is performed by?:
A CPA.
13.Who is the primary source of statements on auditing standards?:
American Institute of Certified Public Accountant ( CPA ).
14.The Hospitality Financial & Technology Professionals serves its
member- ship by...?: Providing training sessions on hospitality
accounting and technology and conducting professionnal development
seminars for clubs, gaming operations and other areas of interest.
15.True or False: The receipt of cash or payment of cash must be present
for a business transaction to occur.: False
16.True or False: Accounting and bookkeeping are identical.: False
17.True or False: A check is not evidence of a business transaction
because it only shows that cash was paid; it is not evidence of the reason
for the payment.: True
18.True or False: Financial accounting is primarily concerned with
external users.: True
19.True or False: A building that cost 60000$ is now appraised for 50000$.
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6
1.The fundamental purpose of accounting is:: To provide accurate, useful
and timely financial information
2.What are some examples of external and internal users of financial
state- ments?: Internal users:
Accountants,managers,employees,officers,workers.. External users:
Investors, governments, banks...
3.In the double-entry system of accounting:: Equal dollar amounts of
debits and credits must be entered for each business transaction.
4.The fundamental accounting equation is:: Assets = Liabilities + Equity.
5.By following generally accepted accounting principles ( GAAP ), an
accoun- tant... :: Helps to ensure that consistent accounting procedures
are observed across the accounting profession.
6.Which generally accepted accounting principle states that, once an ac-
counting method has been adopted, it should be consistently followed
from period to period?: Consistency
7.What is the definition of a business transaction?: Exchange of
something against something else: you give up something, you get
something else in return.
8.What is the difference between accounting and bookkeeping?:
Bookkeeping is the initial phase of accounting; collect the information
and record the transactions. The accountant supervises the
bookkeeping tasks and makes the financial reports.
1/
6
, 9.What are the eleven generally accepted accounting principles
presented in this chapter?: Matching principles, Objectivity principle,
Cost principles, Full Disclosure,Monetary Unit Principle..
10.What are the definitions of accounts receivable and accounts payable?: -
Account receivable is an asset, and accounts payable is a debt.
11.Why is it important that we, hospitality students, know some stuff about
accounting?: As a user of financial information, you ned to know how
the informa- tion is processed and how reports are made/prepared.
12.An audit investigation and subsequent attest function is performed by?:
A CPA.
13.Who is the primary source of statements on auditing standards?:
American Institute of Certified Public Accountant ( CPA ).
14.The Hospitality Financial & Technology Professionals serves its
member- ship by...?: Providing training sessions on hospitality
accounting and technology and conducting professionnal development
seminars for clubs, gaming operations and other areas of interest.
15.True or False: The receipt of cash or payment of cash must be present
for a business transaction to occur.: False
16.True or False: Accounting and bookkeeping are identical.: False
17.True or False: A check is not evidence of a business transaction
because it only shows that cash was paid; it is not evidence of the reason
for the payment.: True
18.True or False: Financial accounting is primarily concerned with
external users.: True
19.True or False: A building that cost 60000$ is now appraised for 50000$.
2/
6
