BOMI CHAPTER 1-14 KEY CONCEPT STUDY GUIDE:
BUDGETING & ACCOUNTING CUMULATIVE TEST WITH ALL
NEEDED TO PASS
1.1-1. eWhich ekey ecomponents emake eup ethe ebookkeeping eprocess? e(1-
2&4): eIs ethe eprocess eof erecording eand eclassifying etransactions
(a efinancial eevent ethat eis eshown ewithin ea efinancial estatement/report)
2.1-1a. eWhat eis ebudgeting e(1-2)?: eIt eis ean eongoing eprocess ecoordinating
eresources eand eexpenditures. eIt eis ecomprised eof:
· Analysis eof ethe epast
· Benchmarking e(reviewing eperformance emetrics)
· Future eProjections
3.1-1b. eWhat edoes ea ebudget ereflect e(1-2)?: eA ebusiness' epriorities eand ethe
eresources eneeded eto eaccomplish ethose epriorities.
4.1-1c. eHow edo eproperty eand efacility emanagers euse eperiodic efinancial
ereports e(1-3)?: eThey euse ethem eto emake ebudgets eand emake ebusiness
edecisions eto ebest ebalance ethe eneeds eof ethe eoccupants eat ethe
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e95
,eproperty eand emarket eforces ewith ethe egoal eof eenhancing ethe eproperty
evalue.
5.1-2. eDescribe ethe erole(s) efilled eby ean eaccountant eduring ethe eholding
eperiod. e(1-3): e· eSupport emanagers eby eprocessing, econtrolling eand
ereporting eaccounting edata.
· Deliver eaccurate, emeaningful eand etimely
efinancial ereports e(They esupport ethe ePM, ethey edo
eNOT eto eexplain ea evariance.)
6.1-1d. eWhat eare etransactions e(1-3)?: eA efinancial eevent ethat eis
erecognized ein ea efinancial estatement eor ereport.
They emust ebe esorted einto eorderly, esystematic, eand elogical
eclassifications eto eproperly econvey efinancial einformation.
7.1-2a. eDescribe ethe erole(s) efilled eby ea eproperty emanager eduring ethe
eholding eperiod. e(1-3): e· eMeeting ethe eowner's egoals eand eobjectives,
ewhich eusually einclude eprotecting eand egrowing ethe ecash eflow.
· Properly ecaring efor ethe ephysical easset.
Both eroles eresult ein eenhancing ethe evalue eof ethe eproperty, ethus eproving
eprofit epotential eupon esale.
8.1-3. eWhat eare ethe eprimary efunctions eassociated ewith eaccounting? e(1-4):
eIt eis ea euniform eand econsistent esystem ewhere efinancial edata eis:
· Interpreted
· Summarized
· Communicated
9.1-4. eSpecify efunctions eincorporated ein ethe ebudgeting eprocess. e(1-4):
eThe eprocess eof eplanning eand ecoordinating eresources e(cash/deposits)
eand eexpenditures e(money espent)
10.1-5. eDescribe ethe eaccounting ecycle etypes emost ecommon eto ethe
ecommercial ereal eestate emanagement ebusiness. e(1-5): e· eCapital e(property
eacquisition e& efinanc-
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,ing)
· Conversion e(non-monetary eassets)
· Expenditure e(Exchange efor egoods eor eservices eEx. eUtility eservices)
· Revenue e(Exchange efor ecash eEx. eCommercial eOffice eSpace)
11.1-5a. eDefine eRevenue eCycle? e(1-5): eIt eincludes ethe efunctions
erequired eto eex- echange eproducts eor eservices ewith ecustomers efor
ecash.
1.Signing: eA etenant esigns ea elease efor eoffice espace.
2.Administering: eLease eadministered, eincludes eassessing echarges efor
euse eof espace
3.Collecting: eRent e& eServices eRevenue eis ecollected.
4.Recording: eCollected eRevenue eis erecorded.
5.Reconciling: eSummary eof eaccounts econfirmed eand ereconciled eto
emake esure ethey ebalance.
12.1-5b. eDefine eExpenditure eCycle e(1-6): eIncludes ethe efunctions ethat:
· Acquire eproperty, egoods, eservices, eand elabor
· Pay efor ethem
· Classify, esummarize, eand ereport----what eis eacquired eand ewhat
eis epaid efor? eEx. eLabor-internal e& eexternal, eSupplies, eUtility
eServices eetc.
13.1-5b1. eExplain ethe e4 eSteps ein ethe eExpenditure eCycle efor ethe
eAcquisition eof eGoods eand eServices. e(1-7): eGoods eand eServices eare:
1.Requested efrom evendor evia ePO eor emonthly econtract.
2.Received eand edocumented eby ereceiving edocument eor eservice erecord
3.Vendor einvoice eis ecoded, eapproved, e& eprocessed efor epayment.
4.Check eissued eto evendor eto epay einvoice.
14.1-5c. eWhat eis ean eaccount e(1-6)?: eAn eindividual erecord eof einformation
eand etrans- eactions erelated eto eeach easset eor eliability eand eeach
easpect eof eowner's eequity.
15.1-6. eWhat eare ethe ethree esummary eaccount etypes? e(1-9): e· eAssets
e(everything ea ecompany eowns)
Ex. eCash, ebuilding e& eland, einventory esupplies, eoffice efurniture
· Liabilities e(funds eborrowed—like emortgage)
Ex. eAccounts epayable, edebts eowed efor eequip e& efurniture, emortgages
· Owner's eEquities e(owner's emoney)
Everything eremaining eafter eliability eis esubtracted eby ethe esum eof eall
eassets.
16.1-6a. eWhat eis ethe ebasic eaccounting eequation? e(1-9): eOwner's eEquities=
3 e/
e95
, Assetse
- eLiabilities
eOR
Assets= eLiabilities e+ eOwner's
eEquity eOR
Assets= eLiabilities e+ e(Capital e+ eRevenue-Expenses)
4 e/
e95
BUDGETING & ACCOUNTING CUMULATIVE TEST WITH ALL
NEEDED TO PASS
1.1-1. eWhich ekey ecomponents emake eup ethe ebookkeeping eprocess? e(1-
2&4): eIs ethe eprocess eof erecording eand eclassifying etransactions
(a efinancial eevent ethat eis eshown ewithin ea efinancial estatement/report)
2.1-1a. eWhat eis ebudgeting e(1-2)?: eIt eis ean eongoing eprocess ecoordinating
eresources eand eexpenditures. eIt eis ecomprised eof:
· Analysis eof ethe epast
· Benchmarking e(reviewing eperformance emetrics)
· Future eProjections
3.1-1b. eWhat edoes ea ebudget ereflect e(1-2)?: eA ebusiness' epriorities eand ethe
eresources eneeded eto eaccomplish ethose epriorities.
4.1-1c. eHow edo eproperty eand efacility emanagers euse eperiodic efinancial
ereports e(1-3)?: eThey euse ethem eto emake ebudgets eand emake ebusiness
edecisions eto ebest ebalance ethe eneeds eof ethe eoccupants eat ethe
1 e/
e95
,eproperty eand emarket eforces ewith ethe egoal eof eenhancing ethe eproperty
evalue.
5.1-2. eDescribe ethe erole(s) efilled eby ean eaccountant eduring ethe eholding
eperiod. e(1-3): e· eSupport emanagers eby eprocessing, econtrolling eand
ereporting eaccounting edata.
· Deliver eaccurate, emeaningful eand etimely
efinancial ereports e(They esupport ethe ePM, ethey edo
eNOT eto eexplain ea evariance.)
6.1-1d. eWhat eare etransactions e(1-3)?: eA efinancial eevent ethat eis
erecognized ein ea efinancial estatement eor ereport.
They emust ebe esorted einto eorderly, esystematic, eand elogical
eclassifications eto eproperly econvey efinancial einformation.
7.1-2a. eDescribe ethe erole(s) efilled eby ea eproperty emanager eduring ethe
eholding eperiod. e(1-3): e· eMeeting ethe eowner's egoals eand eobjectives,
ewhich eusually einclude eprotecting eand egrowing ethe ecash eflow.
· Properly ecaring efor ethe ephysical easset.
Both eroles eresult ein eenhancing ethe evalue eof ethe eproperty, ethus eproving
eprofit epotential eupon esale.
8.1-3. eWhat eare ethe eprimary efunctions eassociated ewith eaccounting? e(1-4):
eIt eis ea euniform eand econsistent esystem ewhere efinancial edata eis:
· Interpreted
· Summarized
· Communicated
9.1-4. eSpecify efunctions eincorporated ein ethe ebudgeting eprocess. e(1-4):
eThe eprocess eof eplanning eand ecoordinating eresources e(cash/deposits)
eand eexpenditures e(money espent)
10.1-5. eDescribe ethe eaccounting ecycle etypes emost ecommon eto ethe
ecommercial ereal eestate emanagement ebusiness. e(1-5): e· eCapital e(property
eacquisition e& efinanc-
2 e/
e95
,ing)
· Conversion e(non-monetary eassets)
· Expenditure e(Exchange efor egoods eor eservices eEx. eUtility eservices)
· Revenue e(Exchange efor ecash eEx. eCommercial eOffice eSpace)
11.1-5a. eDefine eRevenue eCycle? e(1-5): eIt eincludes ethe efunctions
erequired eto eex- echange eproducts eor eservices ewith ecustomers efor
ecash.
1.Signing: eA etenant esigns ea elease efor eoffice espace.
2.Administering: eLease eadministered, eincludes eassessing echarges efor
euse eof espace
3.Collecting: eRent e& eServices eRevenue eis ecollected.
4.Recording: eCollected eRevenue eis erecorded.
5.Reconciling: eSummary eof eaccounts econfirmed eand ereconciled eto
emake esure ethey ebalance.
12.1-5b. eDefine eExpenditure eCycle e(1-6): eIncludes ethe efunctions ethat:
· Acquire eproperty, egoods, eservices, eand elabor
· Pay efor ethem
· Classify, esummarize, eand ereport----what eis eacquired eand ewhat
eis epaid efor? eEx. eLabor-internal e& eexternal, eSupplies, eUtility
eServices eetc.
13.1-5b1. eExplain ethe e4 eSteps ein ethe eExpenditure eCycle efor ethe
eAcquisition eof eGoods eand eServices. e(1-7): eGoods eand eServices eare:
1.Requested efrom evendor evia ePO eor emonthly econtract.
2.Received eand edocumented eby ereceiving edocument eor eservice erecord
3.Vendor einvoice eis ecoded, eapproved, e& eprocessed efor epayment.
4.Check eissued eto evendor eto epay einvoice.
14.1-5c. eWhat eis ean eaccount e(1-6)?: eAn eindividual erecord eof einformation
eand etrans- eactions erelated eto eeach easset eor eliability eand eeach
easpect eof eowner's eequity.
15.1-6. eWhat eare ethe ethree esummary eaccount etypes? e(1-9): e· eAssets
e(everything ea ecompany eowns)
Ex. eCash, ebuilding e& eland, einventory esupplies, eoffice efurniture
· Liabilities e(funds eborrowed—like emortgage)
Ex. eAccounts epayable, edebts eowed efor eequip e& efurniture, emortgages
· Owner's eEquities e(owner's emoney)
Everything eremaining eafter eliability eis esubtracted eby ethe esum eof eall
eassets.
16.1-6a. eWhat eis ethe ebasic eaccounting eequation? e(1-9): eOwner's eEquities=
3 e/
e95
, Assetse
- eLiabilities
eOR
Assets= eLiabilities e+ eOwner's
eEquity eOR
Assets= eLiabilities e+ e(Capital e+ eRevenue-Expenses)
4 e/
e95
