HFT 2401 Final Exam questions well
answered graded A+
What is financial accounting? - correct answer ✔✔accounting for revenues, expenses, assets,
and liabilities (analyze past)
What is cost accounting? - correct answer ✔✔accounting dealing with the recording,
classification, allocation, and reporting of current and prospective costs.
*What is managerial accounting? - correct answer ✔✔accounting designed to provide
information to various management levels in the hospitality operation for the purpose of
enhancing controls. (analyze future)
What is tax accounting? - correct answer ✔✔accounting relating to the preparation and filing of
tax forms with government agencies.
*What is auditing? - correct answer ✔✔Accounting involved in reviewing and evaluating
documents, records, and control systems. (review)
What are accounting systems? - correct answer ✔✔personnel review the information systems
of hospitality organizations.
*What is the American Institute of Certified Public? - correct answer ✔✔make up certified
public accountants (CPA) Generally accepted accounting principles (GAAP)
What is the The Securities and Exchange Commission? - correct answer ✔✔Administers laws
dealing with the interstate sale of stocks and bonds. It works closely with FASB.
,What is the Internal Revenue Service (IRS)? - correct answer ✔✔U.S. government agency
charged with enforcing federal tax laws
*What is the Hospitality Financial and Technology Professionals? - correct answer ✔✔financial
executives of hospitality companies to enhance financial management and technology in the
industry. Certification includes Certified Hotel Account Executive and Certified Hotel Technology
Professional.
*What is the Cost Principle? - correct answer ✔✔when a transaction is recorded, it is the
transaction price (cost) that establishes the accounting value for the product or service
purchased.
*What is the Matching Principle? - correct answer ✔✔expenses be matched with the revenues
they generate
*Which accounts are on a balance sheet? - correct answer ✔✔Assets, liabilities, owner's equity
What happens to the fundamental accounting equation when the sole proprietor of a business
invests more cash in it? - correct answer ✔✔Assets increase, liabilities remain the same, and
owner's equity increases
*What institute makes up certified public accountants? - correct answer ✔✔American Institute
of Certified Public Accountants
*The Tech Hotel purchased a computer for 3,000. The retail value of the computer per the
salesperson is $3,500; however, it is projected that the computer will have a market value of
only $2,500 one year from now. The cost principle dictates that the computer purchase be
recorded on the date of purchase for: - correct answer ✔✔$3,000
*The generally accepted accounting principle of matching requires that - correct answer
✔✔expenses be matched with the revenues they generate
, *What accounts are on an income statement? - correct answer ✔✔Revenue, expenses, net
income
The balance of the income summary account shows on the balance sheet as a debit- TRUE OR
FALSE - correct answer ✔✔False
What are the effects of transactions on the accounting equation/The Fundamental Accounting
Equation? - correct answer ✔✔Assets=liabilities + owners equity
Must be in balance after every transaction
What are asset accounts? - correct answer ✔✔Things the company owns (examples: cash,
notes receivable accounts receivable, accrued interest receivable, marketable securities,
inventories of merchandise, office supplies, operating equipment, prepaid expenses,
investments, property and equipment)
If a customer came in and bought something with cash, what account would we credit and
debit? - correct answer ✔✔Debit revenue and credit cash
What are normal balances? - correct answer ✔✔Assets, liabilities, owners equity, revenue,
expenses
*What accounts have a debit balance? - correct answer ✔✔asset, expense
*What accounts have a credit balance? - correct answer ✔✔liabilities, owners equity, and
revenue
*What does a general ledger consist of? - correct answer ✔✔Individual pages that have each
account
answered graded A+
What is financial accounting? - correct answer ✔✔accounting for revenues, expenses, assets,
and liabilities (analyze past)
What is cost accounting? - correct answer ✔✔accounting dealing with the recording,
classification, allocation, and reporting of current and prospective costs.
*What is managerial accounting? - correct answer ✔✔accounting designed to provide
information to various management levels in the hospitality operation for the purpose of
enhancing controls. (analyze future)
What is tax accounting? - correct answer ✔✔accounting relating to the preparation and filing of
tax forms with government agencies.
*What is auditing? - correct answer ✔✔Accounting involved in reviewing and evaluating
documents, records, and control systems. (review)
What are accounting systems? - correct answer ✔✔personnel review the information systems
of hospitality organizations.
*What is the American Institute of Certified Public? - correct answer ✔✔make up certified
public accountants (CPA) Generally accepted accounting principles (GAAP)
What is the The Securities and Exchange Commission? - correct answer ✔✔Administers laws
dealing with the interstate sale of stocks and bonds. It works closely with FASB.
,What is the Internal Revenue Service (IRS)? - correct answer ✔✔U.S. government agency
charged with enforcing federal tax laws
*What is the Hospitality Financial and Technology Professionals? - correct answer ✔✔financial
executives of hospitality companies to enhance financial management and technology in the
industry. Certification includes Certified Hotel Account Executive and Certified Hotel Technology
Professional.
*What is the Cost Principle? - correct answer ✔✔when a transaction is recorded, it is the
transaction price (cost) that establishes the accounting value for the product or service
purchased.
*What is the Matching Principle? - correct answer ✔✔expenses be matched with the revenues
they generate
*Which accounts are on a balance sheet? - correct answer ✔✔Assets, liabilities, owner's equity
What happens to the fundamental accounting equation when the sole proprietor of a business
invests more cash in it? - correct answer ✔✔Assets increase, liabilities remain the same, and
owner's equity increases
*What institute makes up certified public accountants? - correct answer ✔✔American Institute
of Certified Public Accountants
*The Tech Hotel purchased a computer for 3,000. The retail value of the computer per the
salesperson is $3,500; however, it is projected that the computer will have a market value of
only $2,500 one year from now. The cost principle dictates that the computer purchase be
recorded on the date of purchase for: - correct answer ✔✔$3,000
*The generally accepted accounting principle of matching requires that - correct answer
✔✔expenses be matched with the revenues they generate
, *What accounts are on an income statement? - correct answer ✔✔Revenue, expenses, net
income
The balance of the income summary account shows on the balance sheet as a debit- TRUE OR
FALSE - correct answer ✔✔False
What are the effects of transactions on the accounting equation/The Fundamental Accounting
Equation? - correct answer ✔✔Assets=liabilities + owners equity
Must be in balance after every transaction
What are asset accounts? - correct answer ✔✔Things the company owns (examples: cash,
notes receivable accounts receivable, accrued interest receivable, marketable securities,
inventories of merchandise, office supplies, operating equipment, prepaid expenses,
investments, property and equipment)
If a customer came in and bought something with cash, what account would we credit and
debit? - correct answer ✔✔Debit revenue and credit cash
What are normal balances? - correct answer ✔✔Assets, liabilities, owners equity, revenue,
expenses
*What accounts have a debit balance? - correct answer ✔✔asset, expense
*What accounts have a credit balance? - correct answer ✔✔liabilities, owners equity, and
revenue
*What does a general ledger consist of? - correct answer ✔✔Individual pages that have each
account
