BOMI- BUDGETING AND
ACCOUNTING EXAM
|GUARANTEED ACCURATE ANSWERS
Which key components make up the bookkeeping process? (2)
-
✔✔ANSW✔✔..recording and classifying transactions is known as bookkeeping.
Describe the roles filled by a accountant (3) - ✔✔ANSW✔✔..Accounting is a
system of summarizing, interpreting, and communicating financial
data.
What are the primary functions associated with accounting ? (4) -
✔✔ANSW✔✔..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) -
✔✔ANSW✔✔..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. - ✔✔ANSW✔✔..
Describe the accounting cycle types most common to commercial real estate
,management business (5) - ✔✔ANSW✔✔..revenue cycle and the expenditure
cycle
What are the three summary account types ? (9) - ✔✔ANSW✔✔..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. - ✔✔ANSW✔✔..
How are debits and credits applied to fundamental accounting equation ? (11-12)
- ✔✔ANSW✔✔..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 - ✔✔ANSW✔✔..
explain the relationship between the balance sheets and summary accounts (15)
-
✔✔ANSW✔✔..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) -
✔✔ANSW✔✔..Generally accepted accounting principles (GAAP) are a common
set of accounting principles, 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.
-
✔✔ANSW✔✔..These standards are codified by the Financial Accounting
,Standards Board (FASB).
What are international accounting standards ?(19) - ✔✔ANSW✔✔..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) -
✔✔ANSW✔✔..property industry internal reporting includes , tenant collections,
vendor payments, and monthly operating results.
Describe standard financial statements that businesses use? (20) -
✔✔ANSW✔✔..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) - ✔✔ANSW✔✔..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.
-
✔✔ANSW✔✔..
Explain accounting control strategies as they are used in real estate. (22) -
✔✔ANSW✔✔..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 outflows 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. -
✔✔ANSW✔✔..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. - ✔✔ANSW✔✔..
"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 - ✔✔ANSW✔✔..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 - ✔✔ANSW✔✔..B. memorizing
If Janet performs an accounting function, she will.. blank...financial data.
a. classify
b. identify
c. interpret
d. record - ✔✔ANSW✔✔..c. interpret
remember Janet, that when we create our budget, we make a plan for the
financing
ACCOUNTING EXAM
|GUARANTEED ACCURATE ANSWERS
Which key components make up the bookkeeping process? (2)
-
✔✔ANSW✔✔..recording and classifying transactions is known as bookkeeping.
Describe the roles filled by a accountant (3) - ✔✔ANSW✔✔..Accounting is a
system of summarizing, interpreting, and communicating financial
data.
What are the primary functions associated with accounting ? (4) -
✔✔ANSW✔✔..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) -
✔✔ANSW✔✔..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. - ✔✔ANSW✔✔..
Describe the accounting cycle types most common to commercial real estate
,management business (5) - ✔✔ANSW✔✔..revenue cycle and the expenditure
cycle
What are the three summary account types ? (9) - ✔✔ANSW✔✔..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. - ✔✔ANSW✔✔..
How are debits and credits applied to fundamental accounting equation ? (11-12)
- ✔✔ANSW✔✔..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 - ✔✔ANSW✔✔..
explain the relationship between the balance sheets and summary accounts (15)
-
✔✔ANSW✔✔..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) -
✔✔ANSW✔✔..Generally accepted accounting principles (GAAP) are a common
set of accounting principles, 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.
-
✔✔ANSW✔✔..These standards are codified by the Financial Accounting
,Standards Board (FASB).
What are international accounting standards ?(19) - ✔✔ANSW✔✔..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) -
✔✔ANSW✔✔..property industry internal reporting includes , tenant collections,
vendor payments, and monthly operating results.
Describe standard financial statements that businesses use? (20) -
✔✔ANSW✔✔..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) - ✔✔ANSW✔✔..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.
-
✔✔ANSW✔✔..
Explain accounting control strategies as they are used in real estate. (22) -
✔✔ANSW✔✔..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 outflows 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. -
✔✔ANSW✔✔..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. - ✔✔ANSW✔✔..
"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 - ✔✔ANSW✔✔..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 - ✔✔ANSW✔✔..B. memorizing
If Janet performs an accounting function, she will.. blank...financial data.
a. classify
b. identify
c. interpret
d. record - ✔✔ANSW✔✔..c. interpret
remember Janet, that when we create our budget, we make a plan for the
financing
