The fundamental accounting, Financial Accounting

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Which of the following events would be recorded as an accounting event?

Answer

 

a.

A guest purchases a meal in a food outlet.

 

b.

A guest enters the dining room and is seated by a host.

 

c.

A valet parks a guest's vehicle.

 

d.

A guest complains to front office representatives about a dirty guestroom.

Question

What happens to the fundamental accounting equation when the sole proprietor of a business invests more cash in it?

Answer

 

a.

Assets increase, liabilities increase, and owner's equity decreases.

 

b.

Assets increase, liabilities increase, and owner's equity remains the same.

 

c.

Assets increase, liabilities remain the same, and owner's equity increases.

 

d.

Assets remain the same, liabilities increase, and owner's equity increases.

Question

The branch of accounting that involves reviewing and evaluating documents, records, and control systems is called:

Answer

 

a.

financial accounting.

 

b.

cost accounting.

 

c.

auditing.

 

d.

Managerial accounting.

Question

Which of the following groups has the most influence over the development of accounting principles in the private sector?

Answer

 

a.

Financial Accounting Standards Board (FASB)

 

b.

Securities and Exchange Commission (SEC)

 

c.

Hospitality Financial and Technology Professionals (HFTP)

 

d.

Internal Revenue Service (IRS)


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