HRTM 421 CHAPTER 2 with correct solutions

Financial Accounting correct answers Focuses on financial statements; must present financial condition of the company & operating results Managerial Accounting correct answers Focuses on revenues & expenses and maximizing operating performance; provides timely operating results Develop Standarads correct answers Financial Accounting Standards Board (FASB) Securities and Exchange Committee (SEC) GAAP correct answers Generally Accepted Accounting Principles; they govern all accounting and financial reporting Cost Principle correct answers All transactions must be recorded at cost Full Disclosure Principle correct answers Events that could impact a company's financial position should be reflected on financial statements or footnotes Revenue Recognition Principle correct answers Revenues should be recorded in the month they are earned Matching Principle correct answers All expenses incurred in generating a revenue should be recorded in the period the revenue is earned Monetary Unit Principle correct answers Only transactions that can be expressed in terms of money can be shown on a company's financial statements Economic Entity Principle correct answers Separates the dealings of a business from the private dealings of its owners Going Concern Principle correct answers Requires businesses to assume they will continue to operate into the foreseeable future Time Period Principle correct answers The company must set specific time periods for measuring its financial results Materiality Principle correct answers Significant revenues or expenses should have their own account on the income sheet What are the three main Uniform System of Accounts? correct answers Lodging Industry, Restaurants, and Uniform System of Financial Reporting for Clubs Income Statement correct answers Presents operating results over a specific period of time Balance Sheet correct answers Snapshot of a company's financial position.