BOMI: Comprehensive Guide to Budgeting and
Accounting Essentials
Top Rated Exam Study Guide Current Updated
Edition 2025/2026
100% Certified Questions and Answers by Expert
Which key components make up the bookkeeping process? (2) - ansrecording and classifying
transactions is known as bookkeeping.
Describe the roles filled by a accountant (3) - ansAccounting is a system of summarizing,
interpreting, and communicating financial data.
What are the primary functions associated with accounting ? (4) - ansAccounting is the next
step in the process. Accounting is the system of summarizing, interpreting, and
communicating financial data.
Specify functions incorporated in the budgeting process. (4) - ansBudgeting is the ongoing
process of coordinating resources and expenditures. Through this process, a plan is created
with research and data as the foundation.
The budget reflects the priorities of the business and the resources needed to accomplish
them. - ans
Describe the accounting cycle types most common to commercial real estate management
business (5) - ansrevenue cycle and the expenditure cycle
What are the three summary account types ? (9) - ansassets, liabilities, and owner's equity—
with each other as they increase and decrease with debits and credits.
On the balance sheet, assets, liabilities, and owner's equity show the current status of the
finances of the business or the building. - ans
How are debits and credits applied to fundamental accounting equation ? (11-12) -
ansliabilities and owner's equity normally have a credit balance
a credit entry will increase the liability or owner's equity and a debit entry will decrease the
liability or owner's equity
assets -normally have a debit balance, a debit entry will increase the value of an asset, a credit
entry will decrease the value of an asset - ans
explain the relationship between the balance sheets and summary accounts (15) - ansThe
balance sheet is literally a statement of the balances, or amounts, within all of the assets,
liabilities, and owner's equity summary accounts of the business.
what are the generally accepted accounting principles ? (GAAP) (19) - ansGenerally accepted
accounting principles (GAAP) are a common set of accounting principles, standards, and
procedures that companies use to record accounting data and compile their financial
statements.
GAAP is a combination of authoritative standards (set by policy boards), as well as
commonly accepted ways of recording and reporting accounting information. - ansThese
standards are codified by the Financial Accounting Standards Board (FASB).
What are international accounting standards ?(19) - ansStandards established and maintained
by the International Accounting Standards Board, that are used by multi national companies
What are internal reporting needs common to the real property industry?(20) - ansproperty
industry internal reporting includes , tenant collections, vendor payments, and monthly
operating results.
Describe standard financial statements that businesses use? (20) - ansThese financial
statements consist of an income statements, a balance sheet, and a statement of cash
flows.The income statement shows revenues earned and expenses incurred in earning those
revenues, resulting in net income or net loss for the period.
,BOMI: Comprehensive Guide to Budgeting and
Accounting Essentials
Top Rated Exam Study Guide Current Updated
Edition 2025/2026
100% Certified Questions and Answers by Expert
What are common accounting methods used for recording financial transactions ? (21) -
ansAccounting and financial reports can be prepared on a cash, accrual, or modified accrual
(also known as hybrid) accounting basis.
When the cash method is used, income and expenses are recorded only when they are
received or paid out. This form of accounting is the most basic and has a cote focus on the
actual timing of both cash received and cash dispersed. - ans
Explain accounting control strategies as they are used in real estate. (22) - anscontrol
strategies place to detect fraud or theft but are primarily put in place to avoid human error.
strategies to avoid missed cash collection, or conversely excessive outflows that deplete an
owners cash. These include, collections, costs controls
Scenario - Chapter 1. Harold, an experienced finances manager for Beach Properties, hired
Janet and is reviewing the various aspects of budgeting and accounting that she will need to
understand and perform. - ansAlthough she majored in finance at the local college, she lacks
real world experience. As Harold works with her over the next few weeks, he will seek to
gauge her level of understanding of budgeting and accounting fundamentals.
He will also have her perform some basic tasks. To the degree that she succeeds, she will
move on to more important and complicated projects. To the degree that she fails, Harold will
provide additional training and support. - ans
"Janet, your main job function for the next few months will be to record and classify
transactions" says Harold. "In other words, you will be performing the process of..Blank..
a. accounting b. bookkeeping
c. budgeting d. financing - ansb. bookkeeping
To the degree you are able to assume the role of accountant, Harold informs Janet, you'll
engage in many more functions. However you will not be responsible for ....Blank ...
Financial data - ansB. memorizing
If Janet performs an accounting function, she will.. blank...financial data.
a. classify
b. identify
c. interpret
d. record - ansc. interpret
remember Janet, that when we create our budget, we make a plan for the financing
expenditures in the ...Blank..., says Harold - ansd. next year
At lunch, Janet tells a friend that some of the job functions she will be performing include
acquiring property, paying for it, and reporting on what is acquired and paid for. "Oh," her
friend correctly notes, "then you'll be involved in the....BLANK..cycle of accounting."
a. asset
b. control
c. revenue
d. expenditure - ansd. expenditure
When Janet "balances the books" (or the summary accounts), she will basically be dealing
with:
a. assets, liabilities, and owner's equity.
b. tax planning, revenues, and liabilities.
c. liabilities, budgets, and owner's equity.
,BOMI: Comprehensive Guide to Budgeting and
Accounting Essentials
Top Rated Exam Study Guide Current Updated
Edition 2025/2026
100% Certified Questions and Answers by Expert
d. owner's equity, capital, and tax planning. - ansa. assets, liabilities, and owner's equity
Janet," asks Harold, "if the company takes out a loan to make capital purchases, how would
you record this?" To be correct, Janet should record the money received as a________in
Assets and as a__ in Liabilities.
a. debit; debit
b. debit; credit
c. credit; debit
d. credit; credit - ansb. debit; credit
Day after day, Janet records debits and credits for each entry to the balance sheet. This pro-
cess is referred to as accounting.
a. single-pass
b. double-pass
c. single-entry
d. double-entry - ansd. double-entry
The common set of accounting principles, standards, and procedures that Janet uses to record
accounting data and compile the company's financial statements is known as:
a. ASC.
b. GAAP.
c. IFRS.
d. SPF. - ansb. GAAP.
If we grow to the point where we become a large multinational company doing busi¬ness in
many countries, what set of accounting principles, standards, and procedures will we use?"
asks Janet. "Well then," Harold responds, "in that case, we'll have to use the
a. ASC
b. GAAP
c. IFRS
d. SPF - ansc. IFRS
Over coffee, Harold correctly informs Janet that a .Blank...building-by-building comparison
of actual operating income and expenses against the budget is used to deter¬mine the success
of the property manager in meeting operating plans.
a. daily
b. weekly
c. monthly
d. yearly - ansc. monthly
Janet, if I want to know what monies have been earned, but not yet received, by the company,
what standard financial statement would I consult?" Janet responds quickly and
accurately, "You would want to examine the statement."
a. income
b. cash flow
c. accounts payable
d. accounts receivable - ansd. accounts receivable
For now, Harold has Janet prepare financial reports on a(n) basis, as it is the most basic
method.
a. accrual
, BOMI: Comprehensive Guide to Budgeting and
Accounting Essentials
Top Rated Exam Study Guide Current Updated
Edition 2025/2026
100% Certified Questions and Answers by Expert
b. cash
c. modified accrual
d. modified cash - ansb. cash
Harold will soon be introducing Janet to accounting, or internal, controls that maximize cash
income and minimize cash outflows. In particular, she will have to learn how to help the
company avoid the most common error in properly administering tenant leases, which is: -
ansa. offering lease rates at below-market value.
b. not using smartphone apps for lease payments.
c. overlooking charges that are properly billable to the tenant.
d. delaying the filing of annual forms with the proper governmental authorities.
c. overlooking charges that are properly billable to the tenant. - ans
Chapter 2 - ansChapter 2
In what practical ways do building professionals use records ? ( 2-3_) - ansaccurate data is
what allows stakeholders to take raw data and convert it into useful information from which
final decisions can be made. these records are required for compliance with tax and legal
requirements
Explain the practice of checks and balances . (4) - ansprocedures put in place to ensure to
different individuals perform different roles and functions help ensure checks and balances.
those who authorize payments, should not be the same people who issue checks or mail them
Describe the purpose of a chart of accounts , as well as its components . (8-9) - ansthe chart
of accounts is the list of line items or categories that classifies accounts. charts of accounts
are customized to fit the purposes of the business , and accounts are listed by function
What are the advantages to using a purchase order? (7) - ans1. clearly outline good and
services being provided. 2. outline the general terms of conditions of the purchase. 3.track
purchases in chronological order. 4. limit access.
5. centralize purchasing to enable analysis for preferred supplies or negotiated preferred rates.
6. consolidate orders and discounts. 7. validate accounts 8. record accumulation of inventory
- ans
What items are included in the tenant file? (11) - ansthe tenant file houses the most current
correspondence, leases and other documents. a copy of the lease , lease abstract, rent roll,
lease amendments, floor plans, keying information, security deposits, insurance information
or anything related to the tenant
which elements are typically tracked with the use of a tickler system (14) - anstickler system
is a system that reminds them of important deadlines and filing dates. Lease changes, billing
info, dues dates, corporate reporting dates , accounting cutoff dates all maybe monitored by
tickler system
identify reports common in the commercial real estate industry that aid building professionals
in making decisions about use of space, funds, and interactions with tenants (15-16) -
ansVacancy, delinquency and rent roll are all import reports that help building professionals
make decisions
What is the purpose of the audit trail ? (16) - ansis to leave a record that auditors can verify
What specific information do these reports provide to decision makers ? (15-16) -
ansinformation about available funds, vacant space , churn rate, information for new tenants,
potential tenants and effects on operating budgets due to a increase or loss of rent
Accounting Essentials
Top Rated Exam Study Guide Current Updated
Edition 2025/2026
100% Certified Questions and Answers by Expert
Which key components make up the bookkeeping process? (2) - ansrecording and classifying
transactions is known as bookkeeping.
Describe the roles filled by a accountant (3) - ansAccounting is a system of summarizing,
interpreting, and communicating financial data.
What are the primary functions associated with accounting ? (4) - ansAccounting is the next
step in the process. Accounting is the system of summarizing, interpreting, and
communicating financial data.
Specify functions incorporated in the budgeting process. (4) - ansBudgeting is the ongoing
process of coordinating resources and expenditures. Through this process, a plan is created
with research and data as the foundation.
The budget reflects the priorities of the business and the resources needed to accomplish
them. - ans
Describe the accounting cycle types most common to commercial real estate management
business (5) - ansrevenue cycle and the expenditure cycle
What are the three summary account types ? (9) - ansassets, liabilities, and owner's equity—
with each other as they increase and decrease with debits and credits.
On the balance sheet, assets, liabilities, and owner's equity show the current status of the
finances of the business or the building. - ans
How are debits and credits applied to fundamental accounting equation ? (11-12) -
ansliabilities and owner's equity normally have a credit balance
a credit entry will increase the liability or owner's equity and a debit entry will decrease the
liability or owner's equity
assets -normally have a debit balance, a debit entry will increase the value of an asset, a credit
entry will decrease the value of an asset - ans
explain the relationship between the balance sheets and summary accounts (15) - ansThe
balance sheet is literally a statement of the balances, or amounts, within all of the assets,
liabilities, and owner's equity summary accounts of the business.
what are the generally accepted accounting principles ? (GAAP) (19) - ansGenerally accepted
accounting principles (GAAP) are a common set of accounting principles, standards, and
procedures that companies use to record accounting data and compile their financial
statements.
GAAP is a combination of authoritative standards (set by policy boards), as well as
commonly accepted ways of recording and reporting accounting information. - ansThese
standards are codified by the Financial Accounting Standards Board (FASB).
What are international accounting standards ?(19) - ansStandards established and maintained
by the International Accounting Standards Board, that are used by multi national companies
What are internal reporting needs common to the real property industry?(20) - ansproperty
industry internal reporting includes , tenant collections, vendor payments, and monthly
operating results.
Describe standard financial statements that businesses use? (20) - ansThese financial
statements consist of an income statements, a balance sheet, and a statement of cash
flows.The income statement shows revenues earned and expenses incurred in earning those
revenues, resulting in net income or net loss for the period.
,BOMI: Comprehensive Guide to Budgeting and
Accounting Essentials
Top Rated Exam Study Guide Current Updated
Edition 2025/2026
100% Certified Questions and Answers by Expert
What are common accounting methods used for recording financial transactions ? (21) -
ansAccounting and financial reports can be prepared on a cash, accrual, or modified accrual
(also known as hybrid) accounting basis.
When the cash method is used, income and expenses are recorded only when they are
received or paid out. This form of accounting is the most basic and has a cote focus on the
actual timing of both cash received and cash dispersed. - ans
Explain accounting control strategies as they are used in real estate. (22) - anscontrol
strategies place to detect fraud or theft but are primarily put in place to avoid human error.
strategies to avoid missed cash collection, or conversely excessive outflows that deplete an
owners cash. These include, collections, costs controls
Scenario - Chapter 1. Harold, an experienced finances manager for Beach Properties, hired
Janet and is reviewing the various aspects of budgeting and accounting that she will need to
understand and perform. - ansAlthough she majored in finance at the local college, she lacks
real world experience. As Harold works with her over the next few weeks, he will seek to
gauge her level of understanding of budgeting and accounting fundamentals.
He will also have her perform some basic tasks. To the degree that she succeeds, she will
move on to more important and complicated projects. To the degree that she fails, Harold will
provide additional training and support. - ans
"Janet, your main job function for the next few months will be to record and classify
transactions" says Harold. "In other words, you will be performing the process of..Blank..
a. accounting b. bookkeeping
c. budgeting d. financing - ansb. bookkeeping
To the degree you are able to assume the role of accountant, Harold informs Janet, you'll
engage in many more functions. However you will not be responsible for ....Blank ...
Financial data - ansB. memorizing
If Janet performs an accounting function, she will.. blank...financial data.
a. classify
b. identify
c. interpret
d. record - ansc. interpret
remember Janet, that when we create our budget, we make a plan for the financing
expenditures in the ...Blank..., says Harold - ansd. next year
At lunch, Janet tells a friend that some of the job functions she will be performing include
acquiring property, paying for it, and reporting on what is acquired and paid for. "Oh," her
friend correctly notes, "then you'll be involved in the....BLANK..cycle of accounting."
a. asset
b. control
c. revenue
d. expenditure - ansd. expenditure
When Janet "balances the books" (or the summary accounts), she will basically be dealing
with:
a. assets, liabilities, and owner's equity.
b. tax planning, revenues, and liabilities.
c. liabilities, budgets, and owner's equity.
,BOMI: Comprehensive Guide to Budgeting and
Accounting Essentials
Top Rated Exam Study Guide Current Updated
Edition 2025/2026
100% Certified Questions and Answers by Expert
d. owner's equity, capital, and tax planning. - ansa. assets, liabilities, and owner's equity
Janet," asks Harold, "if the company takes out a loan to make capital purchases, how would
you record this?" To be correct, Janet should record the money received as a________in
Assets and as a__ in Liabilities.
a. debit; debit
b. debit; credit
c. credit; debit
d. credit; credit - ansb. debit; credit
Day after day, Janet records debits and credits for each entry to the balance sheet. This pro-
cess is referred to as accounting.
a. single-pass
b. double-pass
c. single-entry
d. double-entry - ansd. double-entry
The common set of accounting principles, standards, and procedures that Janet uses to record
accounting data and compile the company's financial statements is known as:
a. ASC.
b. GAAP.
c. IFRS.
d. SPF. - ansb. GAAP.
If we grow to the point where we become a large multinational company doing busi¬ness in
many countries, what set of accounting principles, standards, and procedures will we use?"
asks Janet. "Well then," Harold responds, "in that case, we'll have to use the
a. ASC
b. GAAP
c. IFRS
d. SPF - ansc. IFRS
Over coffee, Harold correctly informs Janet that a .Blank...building-by-building comparison
of actual operating income and expenses against the budget is used to deter¬mine the success
of the property manager in meeting operating plans.
a. daily
b. weekly
c. monthly
d. yearly - ansc. monthly
Janet, if I want to know what monies have been earned, but not yet received, by the company,
what standard financial statement would I consult?" Janet responds quickly and
accurately, "You would want to examine the statement."
a. income
b. cash flow
c. accounts payable
d. accounts receivable - ansd. accounts receivable
For now, Harold has Janet prepare financial reports on a(n) basis, as it is the most basic
method.
a. accrual
, BOMI: Comprehensive Guide to Budgeting and
Accounting Essentials
Top Rated Exam Study Guide Current Updated
Edition 2025/2026
100% Certified Questions and Answers by Expert
b. cash
c. modified accrual
d. modified cash - ansb. cash
Harold will soon be introducing Janet to accounting, or internal, controls that maximize cash
income and minimize cash outflows. In particular, she will have to learn how to help the
company avoid the most common error in properly administering tenant leases, which is: -
ansa. offering lease rates at below-market value.
b. not using smartphone apps for lease payments.
c. overlooking charges that are properly billable to the tenant.
d. delaying the filing of annual forms with the proper governmental authorities.
c. overlooking charges that are properly billable to the tenant. - ans
Chapter 2 - ansChapter 2
In what practical ways do building professionals use records ? ( 2-3_) - ansaccurate data is
what allows stakeholders to take raw data and convert it into useful information from which
final decisions can be made. these records are required for compliance with tax and legal
requirements
Explain the practice of checks and balances . (4) - ansprocedures put in place to ensure to
different individuals perform different roles and functions help ensure checks and balances.
those who authorize payments, should not be the same people who issue checks or mail them
Describe the purpose of a chart of accounts , as well as its components . (8-9) - ansthe chart
of accounts is the list of line items or categories that classifies accounts. charts of accounts
are customized to fit the purposes of the business , and accounts are listed by function
What are the advantages to using a purchase order? (7) - ans1. clearly outline good and
services being provided. 2. outline the general terms of conditions of the purchase. 3.track
purchases in chronological order. 4. limit access.
5. centralize purchasing to enable analysis for preferred supplies or negotiated preferred rates.
6. consolidate orders and discounts. 7. validate accounts 8. record accumulation of inventory
- ans
What items are included in the tenant file? (11) - ansthe tenant file houses the most current
correspondence, leases and other documents. a copy of the lease , lease abstract, rent roll,
lease amendments, floor plans, keying information, security deposits, insurance information
or anything related to the tenant
which elements are typically tracked with the use of a tickler system (14) - anstickler system
is a system that reminds them of important deadlines and filing dates. Lease changes, billing
info, dues dates, corporate reporting dates , accounting cutoff dates all maybe monitored by
tickler system
identify reports common in the commercial real estate industry that aid building professionals
in making decisions about use of space, funds, and interactions with tenants (15-16) -
ansVacancy, delinquency and rent roll are all import reports that help building professionals
make decisions
What is the purpose of the audit trail ? (16) - ansis to leave a record that auditors can verify
What specific information do these reports provide to decision makers ? (15-16) -
ansinformation about available funds, vacant space , churn rate, information for new tenants,
potential tenants and effects on operating budgets due to a increase or loss of rent
