BOMI: BUDGETING & ACCOUNTING
EXAM QUESTIONS AND ANSWERS
100% CORRECT
Accounting Equation - ANSWER-Assets = Liabilities + Owner's Equity
Assets - Liabilities = Owner's Equity
Bookkeeping - ANSWER-Process of recording and classifying transactions
Accountants Role - ANSWER-Support managers by processing, controlling, and
reporting accounting data. Deliver accurate, meaningful, and timely financial reports.
Accounting - ANSWER-A uniform and consistent system where financial data is:
interpreted, summarized, and communicated.
Budgeting - ANSWER-The ongoing process of coordinating resources and expenditures
The budgeting process is comprised of: - ANSWER-Future projections, analysis of the
past, and benchmarking.
Financial Analysis - ANSWER-Interpretation of bookkeeping, budgeting, and accounting
with a look to the past but also the future.
Accounting Cycle - ANSWER-Consists of Similar economic events that are conveted
into related types of transactions and processed through the system in similar ways.
Revenue Cycle - ANSWER-Exchange of prpoduce for cash
Expenditure Cycle - ANSWER-
Account - ANSWER-How we classify something
Balance Sheet Consists of - ANSWER-Assets, liabilities, and owner's equity
Balance Sheet - ANSWER-Is a statement of the balances within all of the assets,
liabilities, and owner's equity summary accounts
Fundamental Accounting Equation - ANSWER-Provides demonstration of the balance
that is required between the assets, liabilities, and owner's equity summary accounts
, GAAP - ANSWER-Generally Accepted Accounting Principles. Common set of
accounting principles standards, and procedures. Codified by the Financial Accounting
Standards Board
International Financial Reporting Standartds - ANSWER-Established and maintained by
the International Accounting Standards Board. Used by many multinational companies
in the US and Canada.
Internal Reporting - ANSWER-Numerous activities must be monitored and reported to
properly mange real property such as: tenant collections, vendor payments, and
monthly operating results.
External Reporting - ANSWER-Income Statement
Balance Sheet
Cash Flow Statement
Cash Flow Statement - ANSWER-Describes the changes in cash from one period to the
next
Cash Method of Reporting - ANSWER-Income & expenses are recorded only when they
are received or paid out. This is the most basic form and has a core focus on the actual
timing of both cash received and cash dispersed
Accrual Basis Accounting - ANSWER-Records revenues and expenditures related to
the period for which they are applicable, when earned, whether or not cash has been
transferred. More sophiciasted. GAAP.
Modified Accrual Accounting - ANSWER-Both accrual and cash methods are used.
Accounting Controls - ANSWER-- Collections: Periodic reviews and a tickler system
- Cost Controls: Budget preparations and monthly budget variance reviews
- Other Controls: Management agreement and several layers of review and supervision
Abatement - ANSWER-Free rent used as an incentive for prospective tenants.
Balance sheet - ANSWER-A statment of the financial position of a business entity at a
particular point in time, reflecting the accounting equation
Bank reconciliation - ANSWER-A comparison of cash receipts and disbursements by
reconciling the ending cash balance to the bank records
Base income - ANSWER-Earnings received from the monthlu recurring charges as
stated in the lease
EXAM QUESTIONS AND ANSWERS
100% CORRECT
Accounting Equation - ANSWER-Assets = Liabilities + Owner's Equity
Assets - Liabilities = Owner's Equity
Bookkeeping - ANSWER-Process of recording and classifying transactions
Accountants Role - ANSWER-Support managers by processing, controlling, and
reporting accounting data. Deliver accurate, meaningful, and timely financial reports.
Accounting - ANSWER-A uniform and consistent system where financial data is:
interpreted, summarized, and communicated.
Budgeting - ANSWER-The ongoing process of coordinating resources and expenditures
The budgeting process is comprised of: - ANSWER-Future projections, analysis of the
past, and benchmarking.
Financial Analysis - ANSWER-Interpretation of bookkeeping, budgeting, and accounting
with a look to the past but also the future.
Accounting Cycle - ANSWER-Consists of Similar economic events that are conveted
into related types of transactions and processed through the system in similar ways.
Revenue Cycle - ANSWER-Exchange of prpoduce for cash
Expenditure Cycle - ANSWER-
Account - ANSWER-How we classify something
Balance Sheet Consists of - ANSWER-Assets, liabilities, and owner's equity
Balance Sheet - ANSWER-Is a statement of the balances within all of the assets,
liabilities, and owner's equity summary accounts
Fundamental Accounting Equation - ANSWER-Provides demonstration of the balance
that is required between the assets, liabilities, and owner's equity summary accounts
, GAAP - ANSWER-Generally Accepted Accounting Principles. Common set of
accounting principles standards, and procedures. Codified by the Financial Accounting
Standards Board
International Financial Reporting Standartds - ANSWER-Established and maintained by
the International Accounting Standards Board. Used by many multinational companies
in the US and Canada.
Internal Reporting - ANSWER-Numerous activities must be monitored and reported to
properly mange real property such as: tenant collections, vendor payments, and
monthly operating results.
External Reporting - ANSWER-Income Statement
Balance Sheet
Cash Flow Statement
Cash Flow Statement - ANSWER-Describes the changes in cash from one period to the
next
Cash Method of Reporting - ANSWER-Income & expenses are recorded only when they
are received or paid out. This is the most basic form and has a core focus on the actual
timing of both cash received and cash dispersed
Accrual Basis Accounting - ANSWER-Records revenues and expenditures related to
the period for which they are applicable, when earned, whether or not cash has been
transferred. More sophiciasted. GAAP.
Modified Accrual Accounting - ANSWER-Both accrual and cash methods are used.
Accounting Controls - ANSWER-- Collections: Periodic reviews and a tickler system
- Cost Controls: Budget preparations and monthly budget variance reviews
- Other Controls: Management agreement and several layers of review and supervision
Abatement - ANSWER-Free rent used as an incentive for prospective tenants.
Balance sheet - ANSWER-A statment of the financial position of a business entity at a
particular point in time, reflecting the accounting equation
Bank reconciliation - ANSWER-A comparison of cash receipts and disbursements by
reconciling the ending cash balance to the bank records
Base income - ANSWER-Earnings received from the monthlu recurring charges as
stated in the lease
