HFT 2401 Exam 1 Questions with
All Correct Answers
The major function of the accounting department in a hospitality company is: - Answer-
Communication to all hotel departments on financial results
A new hotel controller failed to make adjusting entries to account for depreciation of the
fixed assets of his hotel. This mistake affects which of the following financial
statements? - Answer-Both the income statement and balance sheet
The Matching Principle relates to: - Answer-Matching appropriate expenses with
corresponding revenues
The Fundamental Accounting Equation may be stated as - Answer-A = L + OE
Service centers (also known as support departments) incur which of the following types
of accounts - Answer-Expenses only
A hospitality company's income statement represents the operations of the firm between
two balance sheet dates - Answer-TRUE
The terms bookkeeping and accounting mean the same thing - Answer-FALSE
A trial balance, if balanced, is evidence that the hospitality accounting staff has properly
recorded all transactions. - Answer-FALSE
Under the USALI format of the income statement, the General Manager's salary is most
likely to be included in Administrative & General expense - Answer-TRUE
The consistency principle dictates that a business must use the same accounting
methods from period to period with no changes permitted unless they are disclosed -
Answer-TRUE
The cost principle dictates that an asset should be recorded on the books of a company
at its purchase cost, even if it becomes more valuable over time - Answer-TRUE
A hospitality business has no need for a chart of accounts - Answer-FALSE
In a compound journal entry, the number of accounts with debits will not necessarily
equal the number of accounts with credits - Answer-TRUE
All Correct Answers
The major function of the accounting department in a hospitality company is: - Answer-
Communication to all hotel departments on financial results
A new hotel controller failed to make adjusting entries to account for depreciation of the
fixed assets of his hotel. This mistake affects which of the following financial
statements? - Answer-Both the income statement and balance sheet
The Matching Principle relates to: - Answer-Matching appropriate expenses with
corresponding revenues
The Fundamental Accounting Equation may be stated as - Answer-A = L + OE
Service centers (also known as support departments) incur which of the following types
of accounts - Answer-Expenses only
A hospitality company's income statement represents the operations of the firm between
two balance sheet dates - Answer-TRUE
The terms bookkeeping and accounting mean the same thing - Answer-FALSE
A trial balance, if balanced, is evidence that the hospitality accounting staff has properly
recorded all transactions. - Answer-FALSE
Under the USALI format of the income statement, the General Manager's salary is most
likely to be included in Administrative & General expense - Answer-TRUE
The consistency principle dictates that a business must use the same accounting
methods from period to period with no changes permitted unless they are disclosed -
Answer-TRUE
The cost principle dictates that an asset should be recorded on the books of a company
at its purchase cost, even if it becomes more valuable over time - Answer-TRUE
A hospitality business has no need for a chart of accounts - Answer-FALSE
In a compound journal entry, the number of accounts with debits will not necessarily
equal the number of accounts with credits - Answer-TRUE
