Chapter 1 - Introduction to Accounting
question and answers 2025
accounting - correct answersThe process of identifying, measuring, and communicating
economic information to permit users to make informed judgments and decisions
accounting systems - correct answersThe branch of accounting that covers the review of a firm's
entire information system, not just the accounting system
accrual basis accounting - correct answersSystem of reporting revenues and expenses in the
period in which they are considered to have been earned or incurred, regardless of the actual
time of collection or payment
adjusting entries - correct answersEntries required at the end of an accounting period to record
internal adjustments of various accounts due to the matching principle of accounting
assets - correct answersResources available for use by the business - that is, anything owned by
the business that has monetary value
auditing - correct answersThe branch of accounting that examines a firm's financial statements
and internal controls for the purpose of expressing opinions regarding the financial statements
balance sheet - correct answersStatement of the financial position of the hospitality
establishment on a given date, giving the account balances for assets, liabilities, and ownership
equity
bookkeeping - correct answersThe recording and classification of transactions
, business entity principle - correct answersAn accounting principle that requires a business
maintain its own set of records and accounts that are separate from other financial interests of
its owners
cash basis accounting - correct answersSystem of reporting revenues and expenses at the time
they are collected or paid, respectively
conservatism principle - correct answersAn accounting principle that requires accounting
procedures that recognize expenses as soon as possible, but delay the recognition of revenues
until they are ensured
consistency principle - correct answersAn accounting 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
continuity of the business unit principle (going concern principle) - correct answersThe
assumption in preparing the accounting records and reports that the business will continue
indefinitely and that liquidation is not a prospect
corporation - correct answersA form of business organization that provides a separate legal
entity apart from its owner or owners
cost accounting - correct answersThe branch of accounting dealing with the recording,
classification, allocation, and reporting of current and prospective costs in order to aid
operations personnel in controlling operations
cost principle - correct answersAn accounting principle that requires recording the value of
transactions for accounting purposes at the actual transaction price
double taxation - correct answersThis occurs when both corporate profits and dividends paid to
stockholders are taxed
question and answers 2025
accounting - correct answersThe process of identifying, measuring, and communicating
economic information to permit users to make informed judgments and decisions
accounting systems - correct answersThe branch of accounting that covers the review of a firm's
entire information system, not just the accounting system
accrual basis accounting - correct answersSystem of reporting revenues and expenses in the
period in which they are considered to have been earned or incurred, regardless of the actual
time of collection or payment
adjusting entries - correct answersEntries required at the end of an accounting period to record
internal adjustments of various accounts due to the matching principle of accounting
assets - correct answersResources available for use by the business - that is, anything owned by
the business that has monetary value
auditing - correct answersThe branch of accounting that examines a firm's financial statements
and internal controls for the purpose of expressing opinions regarding the financial statements
balance sheet - correct answersStatement of the financial position of the hospitality
establishment on a given date, giving the account balances for assets, liabilities, and ownership
equity
bookkeeping - correct answersThe recording and classification of transactions
, business entity principle - correct answersAn accounting principle that requires a business
maintain its own set of records and accounts that are separate from other financial interests of
its owners
cash basis accounting - correct answersSystem of reporting revenues and expenses at the time
they are collected or paid, respectively
conservatism principle - correct answersAn accounting principle that requires accounting
procedures that recognize expenses as soon as possible, but delay the recognition of revenues
until they are ensured
consistency principle - correct answersAn accounting 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
continuity of the business unit principle (going concern principle) - correct answersThe
assumption in preparing the accounting records and reports that the business will continue
indefinitely and that liquidation is not a prospect
corporation - correct answersA form of business organization that provides a separate legal
entity apart from its owner or owners
cost accounting - correct answersThe branch of accounting dealing with the recording,
classification, allocation, and reporting of current and prospective costs in order to aid
operations personnel in controlling operations
cost principle - correct answersAn accounting principle that requires recording the value of
transactions for accounting purposes at the actual transaction price
double taxation - correct answersThis occurs when both corporate profits and dividends paid to
stockholders are taxed
