Complete List of Terms and Definitions for Accounting
|The statement of cash flows explains the changes in cash and cash ----- during the specified time interval.||Equivalents|
|Posting is the process of proving the equality of debits and credits in the trial balance.||False.|
|The primary objective of financial reporting is to provide information:||useful in predicting cashflow|
An asset-expense relationship exists with
a. Liability accounts
b. Revenue accounts
c. Prepaid expense adjusting entries
d. Accrued expensee adjusting entries.
|c. Prepaid expense adjusting entries|
Which of the following accounts is not closed at the end of an accounting period?
a. Retained Earning
c. Rooms Revenue
d. Insurance Expense
Which of the following statements is not true?
a. comparability means using the same accounting principles from year to year within a company.
b. reliability of information gives assurance that info is free of error or bias
c. relevant accounting info mus
|a. comparibility means using the same accounting principles from year to year within a company|
A sales journal is used to record
a. only cash sales of merchandise.
b. sales of all assets on credit and for cash.
c. only credit sales of merchandise.
d. credit sales of merchandise, sales returns and allowances and sales discounts.
|c. only credit sales of merchandise|
Which of the following is not a characteristic of the balance sheet?
a. Assets generally are listed in order of their liquidity.
b. The major classifications of the balance sheet are assets, liabilities, and owners' equity.
c. The balance sheet reports t
|c. The balance sheet reports the change in financial position.|
Which of the following would not be considered an internal user of accounting data for the XYZ Restaurant Company?
a. president of the company
b. restaurant manager
c. merchandise inventory clerk
d. president of the employees' labor union
|d. president of the employees' labor union|
|Which principle/guideline directs a company to show all the expenses related to its revenues of a specified period even if the expenses were not paid in that period?||Matching|
|T or F: The revenue recognition principle dictates that revenue should be recognized in the accounting period in which cash is received.||False|
|A trial balance does not prove that all transactions have been recorded or that the ledger is correct.||True.|
Amounts earned by a company in its main operating activites are:
d. none of the above
Which of the following is considered a practical constraint on the qualitative characteristics?
c. Cost effectiveness
|c. cost effectiveness|
A post-closing trial balance will show
a. zero balances for all accounts
b. zero balances for balance sheet accounts
c. only balance sheet accounts
d. only income statement accounts
|c. only balance sheet accounts|
Cash from sales of merchandise will be recorded in the
a. purchases journal.
b. sales journal.
c. cash receipts journal.
d. general journal.
|c. cash receipts journal.|
The one characteristic that all entries recorded in a cash receipts journal have in common is:
a. a credit to the Cash account.
b. that they all represent collections from customers.
c. that they originate from the sale of merchandise.
d. a debit to the C
|d. a debit to the Cash account.|
a. the cost of assets consumed during the period
b. gross increased in stockholder's equity resulting from business activities
c. the cost of services used during the period
d. actual or expected cash outflow
|b. gross increases in stockholders' equity resulting from business activities|
The size of a hotel’s accounting department depends on?
a. the number of guests
b. the size of the hotel.
c. the number of employees.
d. the number of reservations.
|b. the size of the hotel.|
Financing activities involve
A. lending money.
B. acquiring investments.
C. issuing debt.
D. acquiring long-lived assets.
|C. issuing debt.|
|When cash or other assets are distributed to stockholders, these distributions are termed||dividends.|
|Information that relates to a firm's solvency is used to assess the firm's ability to||pay it's debts|
a. Are future economic benefits.
b. Are existing debts and obligations.
c. Posses service potential.
d. Are things of value used by the business in its operation.
|b. Are existing debts and obligations.|
under the acrual basis of accounting:
a. cash must be received before revenue is recognized
b. Net income is computed by matching cash outflows against cash inflows
c. Events that change a company's financial statements are recognized in the period they o
|c. Events that change a company's financial statements are recognized in the period they occur rather than in th period in which cash is paid or received|
|The economic entity assumption states that||economic events can be identified with a particular event|
|Which one of the following accounting systems is not currently in use in hospitality industry?||The Uniform Financial System for Gaming|
Which of the following accounting systems is currently used by full service hotels?
a. The Uniform System of Accounts for Restaurants
b. The Uniform Financial System for Gaming
c. The Uniform System of Financial Reporting for Clubs
d. The Uniform System o
|d. The Uniform System of Accounts for the Lodging Industry|