HFT2401 Hospitality Industry Financial
Accounting Chapter 1,2,3 Exam
questions 2026 Exam Questions and
verified Answers
Accounting - CORRECT ANSWERS The process of identifying, measuring, and communicating
economic information to permit informed judgement and decisions by users of the information.
Financial accounting (branch of accounting) - CORRECT ANSWERS accounting for revenues,
expenses, assets, and liabilities.
Cost accounting (branch of accounting) - CORRECT ANSWERS accounting dealing with the
recording, classification, allocation, and reporting of current and prospective costs.
Managerial accounting (branch of accounting) - CORRECT ANSWERS accounting designed to
provide information to various management levels in the hospitality operation for the purpose of
enhancing controls.
Tax accounting (branch of accounting) - CORRECT ANSWERS accounting relating to the
preparation and filing of tax forms with government agencies.
Auditing (branch of accounting) - CORRECT ANSWERS accounting involved in reviewing and
evaluating documents, records, and control systems
Accounting systems (branch of accounting) - CORRECT ANSWERS accounting that covers the
review of a firm's entire information system, not just the accounting system
Cost (principle of accounting) - CORRECT ANSWERS An accounting principle that requires
recording the value of transactions for accounting purposes at the actual transaction price (cost)
, Business entity (principle of accounting) - CORRECT ANSWERS principle that requires that a
business maintain its own set of records and accounts that are separate from other financial interests
(business separate from personal life)
Continuity of the Business Unit (principle of accounting) - CORRECT ANSWERS Assumption in
preparing the accounting records and reports that the business will continue indefinitely and that
liquidation is not a prospect (business is a going concern)
Unit of Measure (principle of accounting) - CORRECT ANSWERS principle that requires
financial data to be recorded with a common unit of measure. (in U.S it's the dollar)
Objective evidence (principle of accounting) - CORRECT ANSWERS principle that states that
all accounting transactions and the resulting accounting records should be based on objectively
determined evidence to the greatest extent possible
Full disclosure (principle of accounting) - CORRECT ANSWERS principle stating that a
business's financial statements should provide information on all the significant facts that have s bearing
on their interpretation. Example: disclosures include the accounting methods used, changes in the
accounting methods, contingent liabilities, events occurring subsequent to the financial statement date,
and unusual and nonrecurring items (footnotes)
Consistency (principle of accounting) - CORRECT ANSWERS principle that requires that once
an accounting method has been adopted, it should be followed from period to period in the future
unless a change in accounting methods is warranted and disclosed
Matching (principle of accounting) - CORRECT ANSWERS principle that requires that
expenses and revenues be matched to the period in which they were incurred or earned regardless of
when they are actually realized (revenue is recorded where its earned)
Conservatism (principle of accounting) - CORRECT ANSWERS principle that requires
accounting procedures that recognize expenses as soon as possible, but delay the recognition of
Accounting Chapter 1,2,3 Exam
questions 2026 Exam Questions and
verified Answers
Accounting - CORRECT ANSWERS The process of identifying, measuring, and communicating
economic information to permit informed judgement and decisions by users of the information.
Financial accounting (branch of accounting) - CORRECT ANSWERS accounting for revenues,
expenses, assets, and liabilities.
Cost accounting (branch of accounting) - CORRECT ANSWERS accounting dealing with the
recording, classification, allocation, and reporting of current and prospective costs.
Managerial accounting (branch of accounting) - CORRECT ANSWERS accounting designed to
provide information to various management levels in the hospitality operation for the purpose of
enhancing controls.
Tax accounting (branch of accounting) - CORRECT ANSWERS accounting relating to the
preparation and filing of tax forms with government agencies.
Auditing (branch of accounting) - CORRECT ANSWERS accounting involved in reviewing and
evaluating documents, records, and control systems
Accounting systems (branch of accounting) - CORRECT ANSWERS accounting that covers the
review of a firm's entire information system, not just the accounting system
Cost (principle of accounting) - CORRECT ANSWERS An accounting principle that requires
recording the value of transactions for accounting purposes at the actual transaction price (cost)
, Business entity (principle of accounting) - CORRECT ANSWERS principle that requires that a
business maintain its own set of records and accounts that are separate from other financial interests
(business separate from personal life)
Continuity of the Business Unit (principle of accounting) - CORRECT ANSWERS Assumption in
preparing the accounting records and reports that the business will continue indefinitely and that
liquidation is not a prospect (business is a going concern)
Unit of Measure (principle of accounting) - CORRECT ANSWERS principle that requires
financial data to be recorded with a common unit of measure. (in U.S it's the dollar)
Objective evidence (principle of accounting) - CORRECT ANSWERS principle that states that
all accounting transactions and the resulting accounting records should be based on objectively
determined evidence to the greatest extent possible
Full disclosure (principle of accounting) - CORRECT ANSWERS principle stating that a
business's financial statements should provide information on all the significant facts that have s bearing
on their interpretation. Example: disclosures include the accounting methods used, changes in the
accounting methods, contingent liabilities, events occurring subsequent to the financial statement date,
and unusual and nonrecurring items (footnotes)
Consistency (principle of accounting) - CORRECT ANSWERS principle that requires that once
an accounting method has been adopted, it should be followed from period to period in the future
unless a change in accounting methods is warranted and disclosed
Matching (principle of accounting) - CORRECT ANSWERS principle that requires that
expenses and revenues be matched to the period in which they were incurred or earned regardless of
when they are actually realized (revenue is recorded where its earned)
Conservatism (principle of accounting) - CORRECT ANSWERS principle that requires
accounting procedures that recognize expenses as soon as possible, but delay the recognition of
