HMD 340 Exam #1| Ques ons and answers| Updated
RATED A+ | 2026
What are some characteris cs of the hospitality industry?
What is GAAP?
Generally Accepted Accoun ng Principles
What is the cost principle?
A principle that states that acquired assets and services should be recorded at their actual cost.
What is a business en ty in accoun ng?
In accoun ng, each business is required to maintain its own set of accounts that are separate
from other financial interests of its owners.
What is unit of measurement in accoun ng?
Monetary value stated in financial statements must provide informa on on all the significant
facts that have a bearing on their interpreta on.
What is the consistency principle?
once chosen, the same accoun ng method should be applied in all periods
What is the matching principle?
requires recording expenses in the same period as the revenues un l they are ensured
What is the conserva sm principle?
Requires accoun ng procedures that recognize expenses as soon as possible, but delay the
recogni on of revenues un l they are ensured
What is the materiality principle?
requires that events be recognized and recorded by accoun ng procedures if they make a
difference as determined by some rela ve standard of comparison
What is the revenue recogni on principle?
determining the proper ming for recording revenues
What are some characteris cs of the hospitality industry in accoun ng?
RATED A+ | 2026
What are some characteris cs of the hospitality industry?
What is GAAP?
Generally Accepted Accoun ng Principles
What is the cost principle?
A principle that states that acquired assets and services should be recorded at their actual cost.
What is a business en ty in accoun ng?
In accoun ng, each business is required to maintain its own set of accounts that are separate
from other financial interests of its owners.
What is unit of measurement in accoun ng?
Monetary value stated in financial statements must provide informa on on all the significant
facts that have a bearing on their interpreta on.
What is the consistency principle?
once chosen, the same accoun ng method should be applied in all periods
What is the matching principle?
requires recording expenses in the same period as the revenues un l they are ensured
What is the conserva sm principle?
Requires accoun ng procedures that recognize expenses as soon as possible, but delay the
recogni on of revenues un l they are ensured
What is the materiality principle?
requires that events be recognized and recorded by accoun ng procedures if they make a
difference as determined by some rela ve standard of comparison
What is the revenue recogni on principle?
determining the proper ming for recording revenues
What are some characteris cs of the hospitality industry in accoun ng?
