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RHM 474 FINAL EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS
The format of the operating statements prepared by a hotel accounting
department is based on:
A. areas of responsibility
B. The priorities of the marketing plan
C. competitive benchmarks
D. sales volume Ans: A. areas of responsibility
A piece of equipment is purchased for $3,000 two years ago has been
appraised at $4,500. The equipment is not written up to $4,500 because
of the following generally accepted accounting principle:
A. matching principle
B. cost principle
C. objective evidence principle
D. consistency principle Ans: B. cost principle
Which of the following generally accepted accounting principles states
that inventory may be carried at the lower of cost or market value?
A. materiality principle
B. conservatism principle
C. cost principle
D. disclosure principle Ans: B. conservatism principle
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Which of the following describes a system of reporting revenues and
expenses at the time they are collected or paid?
A. cash basis accounting
B. matching basis accounting
C. accrual basis accounting
D. continuity basis accounting Ans: A. cash basis accounting
The branch of accounting that involves reviewing and evaluating
documents, records, and control systems is called:
A. auditing
B. cost accounting
C. managerial accounting
D. financial accounting Ans: A. auditing
The basic purpose of managerial accounting is to:
A. provide information to various management levels
B. select appropriate suppliers
C. evaluating accounting records and procedures
D. determine market demand Ans: A. provide information to various
management levels
Total liabilities equal $600,000 while total owners' equity equals
$400,000. Total assets must equal:
A. $200,000
B. $400,000
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C. $600,000
D. $1,000,000 Ans: D. $1,000,000
Transferring amounts from journals to ledger accounts is called:
A. crediting
B. posting
C. adjusting entries
D. debiting Ans: B. posting
Which of the following types of business organizations is NOT subject to
double taxation and offers limited liability to its owner(s)?
A. sole proprietorship
B. partnership
C. S corporation
D. C corporation Ans: C. S corporation
According to the Uniform System of Accounts for the Lodging Industry,
security deposits and goodwill must be listed on the balance sheet as:
A. other assets
B. other liabilities
C. current assets
D. property and equipment Ans: A. other assets
Accumulated depreciation accounts are normally shown in the _________
section of the balance sheet:
A. owners' equity
RHM 474 FINAL EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS
The format of the operating statements prepared by a hotel accounting
department is based on:
A. areas of responsibility
B. The priorities of the marketing plan
C. competitive benchmarks
D. sales volume Ans: A. areas of responsibility
A piece of equipment is purchased for $3,000 two years ago has been
appraised at $4,500. The equipment is not written up to $4,500 because
of the following generally accepted accounting principle:
A. matching principle
B. cost principle
C. objective evidence principle
D. consistency principle Ans: B. cost principle
Which of the following generally accepted accounting principles states
that inventory may be carried at the lower of cost or market value?
A. materiality principle
B. conservatism principle
C. cost principle
D. disclosure principle Ans: B. conservatism principle
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Which of the following describes a system of reporting revenues and
expenses at the time they are collected or paid?
A. cash basis accounting
B. matching basis accounting
C. accrual basis accounting
D. continuity basis accounting Ans: A. cash basis accounting
The branch of accounting that involves reviewing and evaluating
documents, records, and control systems is called:
A. auditing
B. cost accounting
C. managerial accounting
D. financial accounting Ans: A. auditing
The basic purpose of managerial accounting is to:
A. provide information to various management levels
B. select appropriate suppliers
C. evaluating accounting records and procedures
D. determine market demand Ans: A. provide information to various
management levels
Total liabilities equal $600,000 while total owners' equity equals
$400,000. Total assets must equal:
A. $200,000
B. $400,000
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C. $600,000
D. $1,000,000 Ans: D. $1,000,000
Transferring amounts from journals to ledger accounts is called:
A. crediting
B. posting
C. adjusting entries
D. debiting Ans: B. posting
Which of the following types of business organizations is NOT subject to
double taxation and offers limited liability to its owner(s)?
A. sole proprietorship
B. partnership
C. S corporation
D. C corporation Ans: C. S corporation
According to the Uniform System of Accounts for the Lodging Industry,
security deposits and goodwill must be listed on the balance sheet as:
A. other assets
B. other liabilities
C. current assets
D. property and equipment Ans: A. other assets
Accumulated depreciation accounts are normally shown in the _________
section of the balance sheet:
A. owners' equity
