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AHLEI Final test guide with complet solution
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AHLEI Final test guide with complet solution
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AHLEI Final test guide with completsolution
Why is it important that you, a hospitality student or professional, study accounting? - ANS
As a user of financial information, you need to know how the information is processed and how
reports are prepared.
The fundamental purpose of accounting is to: - ANS provide accurate, useful, and timely
financial information.
The fundamental accounting equation is: - ANS assets = liabilities + equity
In the double-entry system of accounting: - ANS equal dollar amounts of debits and credits
must be entered for each business transaction.
The Hospitality Financial & Technology Professionals serves its membership by: - ANS
providing training sessions on hospitality accounting and technology and conducting
professional development seminars for clubs, gaming operations, and other areas of special
interest.
In a corporation business form: - ANS profits are retained in the corporation, with
shareholders receiving dividends at the discretion of the board of directors.
How is a business's income tax computed? - ANS taxable income multiplied by an
applicable tax rate
Which of the following best describes par value of a corporation's stock? - ANS It is an
established value for a company's stock, generally very low, below which the stock cannot be
originally issued.
Which of the following statements regarding the partnership form of business is true? - ANS
It may have any number of limited partners.
Forming a corporation is a legal procedure performed by: - ANS filing articles of
incorporation with the secretary of corporation's office in the corporation's home state.
The financial document that provides information about the results of a company's operations
for a period of time is the: - ANS statement of income.
The purpose of a balance sheet is to: - ANS show the financial position of a company on a
given date.
, Which of the following are the basic financial statements prepared by hospitality businesses? -
ANS statement of income, equity statement, balance sheet, statement of cash flows.
Managers, stockholders, investors, creditors, and other interested readers of a hospitality
business's financial statements use the statements to get information about: - ANS what the
hospitality operation has accomplished financially,
where cash came from and where it was spent during the most recent accounting period, and
the operation's ability to pay its bills.
The statement of retained earnings for a corporation shows: - ANS the amount of earnings
retained by the corporation.
An unsecured bond backed only by the good faith of the issuer is called a: - ANS debenture
bond.
The account Prepaid Insurance is classified on the balance sheet as a: - ANS current asset.
Assets in the Property and Equipment category are sometimes referred to as: - ANS fixed
assets.
Current assets consist of: - ANS those that are convertible to cash within 12 months of the
balance sheet date, those that are available without restriction for use in payment of current
liabilities, and cash.
Under which of the following is sales tax collected from guests recorded? - ANS current
liability.
Which of the following is an example of a fixed expense? - ANS property insurance.
Which of the following is included in sales? - ANS credit card sales.
A hospitality operation uses a perpetual inventory system. How would food issues from the
storeroom to the kitchen be recorded in bookkeeping accounts? - ANS as a decrease in the
inventory account and an increase in the cost of food sales account.
Sales tax collected as the result of a sale of merchandise is recorded as: - ANS a liability.
For accounting purposes, a sale is recognized and recorded in the revenue classification when:
- ANS services are rendered or when goods are delivered.
How does the purchase of advertising on open account affect the accounting record? - ANS
it increases both an expense account and a liability account.
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