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BOMI- Budgeting and Accounting Final Exam 2024 Actual Questions and Answers Solved Correctly
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BOMI- Budgeting and Accounting Final Exam 2024 Actual Questions and Answers Solved Correctly
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1 1 BOMI - Budgeting and Accounting Final Exam 202 4 Actual Questions and Answers Solved Correctly Which key components make up the bookkeeping process? (2) Ans - recording and classifying transactions is known as bookkeeping. Describe the roles filled by a accountant (3) Ans - Accounting is a system of summarizing, interpreting, and communicating financial data. What are the primary functions associated with accounting ? (4) Ans - Accounting 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) Ans - Budgeting 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) Ans - revenue cycle and the expenditure cycle What are the three summary account types ? (9) Ans - assets, 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) Ans - liabilities 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) Ans - The 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) Ans - Generally accepted accounting principles (GAAP) are a common set of accounting principles, 2 2 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. Ans - These standards are codified by the Financial Accounting Standards Board (FASB). What are international accounting standards ?(19) Ans - Standards 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) Ans - property industry internal reporting includes , tenant collections, vendor payments, and monthly operating results. Describe standard financial statements that businesses use? (20) Ans - These 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. What are common accounting methods used for recording financial transactions ? (21) Ans- Accounting 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) Ans - control 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 ou tflows 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. Ans - Although 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 - 3 3 "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 Ans - b. 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 Ans - B. memorizing If Janet performs an accounting function, she will.. blank...financial data. a. classify b. identify c. interpret d. record Ans - c. interpret remember Janet, that when we create our budget, we make a plan for the financing expenditures in the ...Blank..., says Harold Ans - d. 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..cycl e of accounting." a. asset b. control c. revenue d. expenditure Ans - d. 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. d. owner's equity, capital, and tax planning. Ans - a. 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 Ans - b. debit; credit Day after day, Janet records debits and credits for each entry to the balance sheet. This pro- 4 4 cess is referred to as accounting. a. single -pass b. double -pass c. single -entry d. double -entry Ans - d. 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. Ans - b. 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 Ans - c. 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 Ans - c. 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 Ans - d. accounts receivable For now, Harold has Janet prepare financial reports on a(n) basis, as it is the most basic method. a. accrual b. cash c. modified accrual d. modified cash Ans - b. cashThe benefits of buying summaries with Stuvia:
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