Chapter 1 - Introduction to Accounting
QUESTIONSAND CORRECT AND
VERIFIED ANSWERS(2025-2026)
accounting - ---------correct answer--------The process of identifying, measuring, and
communicating economic information to permit users to make informed judgments and
decisions
accounting systems - ---------correct answer--------The branch of accounting that covers
the review of a firm's entire information system, not just the accounting system
accrual basis accounting - ---------correct answer--------System of reporting revenues
and expenses in the period in which they are considered to have been earned or
incurred, regardless of the actual time of collection or payment
adjusting entries - ---------correct answer--------Entries required at the end of an
accounting period to record internal adjustments of various accounts due to the
matching principle of accounting
assets - ---------correct answer--------Resources available for use by the business - that
is, anything owned by the business that has monetary value
auditing - ---------correct answer--------The branch of accounting that examines a firm's
financial statements and internal controls for the purpose of expressing opinions
regarding the financial statements
balance sheet - ---------correct answer--------Statement of the financial position of the
hospitality establishment on a given date, giving the account balances for assets,
liabilities, and ownership equity
bookkeeping - ---------correct answer--------The recording and classification of
transactions
business entity principle - ---------correct answer--------An accounting principle that
requires a business maintain its own set of records and accounts that are separate from
other financial interests of its owners
cash basis accounting - ---------correct answer--------System of reporting revenues and
expenses at the time they are collected or paid, respectively
conservatism principle - ---------correct answer--------An accounting principle that
requires accounting procedures that recognize expenses as soon as possible, but delay
the recognition of revenues until they are ensured
QUESTIONSAND CORRECT AND
VERIFIED ANSWERS(2025-2026)
accounting - ---------correct answer--------The process of identifying, measuring, and
communicating economic information to permit users to make informed judgments and
decisions
accounting systems - ---------correct answer--------The branch of accounting that covers
the review of a firm's entire information system, not just the accounting system
accrual basis accounting - ---------correct answer--------System of reporting revenues
and expenses in the period in which they are considered to have been earned or
incurred, regardless of the actual time of collection or payment
adjusting entries - ---------correct answer--------Entries required at the end of an
accounting period to record internal adjustments of various accounts due to the
matching principle of accounting
assets - ---------correct answer--------Resources available for use by the business - that
is, anything owned by the business that has monetary value
auditing - ---------correct answer--------The branch of accounting that examines a firm's
financial statements and internal controls for the purpose of expressing opinions
regarding the financial statements
balance sheet - ---------correct answer--------Statement of the financial position of the
hospitality establishment on a given date, giving the account balances for assets,
liabilities, and ownership equity
bookkeeping - ---------correct answer--------The recording and classification of
transactions
business entity principle - ---------correct answer--------An accounting principle that
requires a business maintain its own set of records and accounts that are separate from
other financial interests of its owners
cash basis accounting - ---------correct answer--------System of reporting revenues and
expenses at the time they are collected or paid, respectively
conservatism principle - ---------correct answer--------An accounting principle that
requires accounting procedures that recognize expenses as soon as possible, but delay
the recognition of revenues until they are ensured
