BOMI- Budgeting and Accounting Exam
2026 Questions and Answers 100% Pass
Guaranteed
Which key components make up the bookkeeping process? (2) - Correct answer-
recording and classifying transactions is known as bookkeeping.
Describe the roles filled by a accountant (3) - Correct answer-Accounting is a
system of summarizing, interpreting, and communicating financial data.
What are the primary functions associated with accounting ? (4) - Correct answer-
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) - Correct answer-
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. - Correct answer-
©COPYRIGHT 2025, ALL RIGHTS RESERVE 1
,Describe the accounting cycle types most common to commercial real estate
management business (5) - Correct answer-revenue cycle and the expenditure cycle
What are the three summary account types ? (9) - Correct answer-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. - Correct answer-
How are debits and credits applied to fundamental accounting equation ? (11-12) -
Correct answer-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 - Correct answer-
explain the relationship between the balance sheets and summary accounts (15) -
Correct answer-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.
©COPYRIGHT 2025, ALL RIGHTS RESERVE 2
,what are the generally accepted accounting principles ? (GAAP) (19) - Correct
answer-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. -
Correct answer-These standards are codified by the Financial Accounting
Standards Board (FASB).
What are international accounting standards ?(19) - Correct answer-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) -
Correct answer-property industry internal reporting includes , tenant collections,
vendor payments, and monthly operating results.
Describe standard financial statements that businesses use? (20) - Correct answer-
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.
©COPYRIGHT 2025, ALL RIGHTS RESERVE 3
, What are common accounting methods used for recording financial transactions ?
(21) - Correct answer-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. - Correct
answer-
Explain accounting control strategies as they are used in real estate. (22) - Correct
answer-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. - Correct answer-
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.
©COPYRIGHT 2025, ALL RIGHTS RESERVE 4
2026 Questions and Answers 100% Pass
Guaranteed
Which key components make up the bookkeeping process? (2) - Correct answer-
recording and classifying transactions is known as bookkeeping.
Describe the roles filled by a accountant (3) - Correct answer-Accounting is a
system of summarizing, interpreting, and communicating financial data.
What are the primary functions associated with accounting ? (4) - Correct answer-
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) - Correct answer-
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. - Correct answer-
©COPYRIGHT 2025, ALL RIGHTS RESERVE 1
,Describe the accounting cycle types most common to commercial real estate
management business (5) - Correct answer-revenue cycle and the expenditure cycle
What are the three summary account types ? (9) - Correct answer-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. - Correct answer-
How are debits and credits applied to fundamental accounting equation ? (11-12) -
Correct answer-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 - Correct answer-
explain the relationship between the balance sheets and summary accounts (15) -
Correct answer-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.
©COPYRIGHT 2025, ALL RIGHTS RESERVE 2
,what are the generally accepted accounting principles ? (GAAP) (19) - Correct
answer-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. -
Correct answer-These standards are codified by the Financial Accounting
Standards Board (FASB).
What are international accounting standards ?(19) - Correct answer-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) -
Correct answer-property industry internal reporting includes , tenant collections,
vendor payments, and monthly operating results.
Describe standard financial statements that businesses use? (20) - Correct answer-
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.
©COPYRIGHT 2025, ALL RIGHTS RESERVE 3
, What are common accounting methods used for recording financial transactions ?
(21) - Correct answer-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. - Correct
answer-
Explain accounting control strategies as they are used in real estate. (22) - Correct
answer-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. - Correct answer-
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.
©COPYRIGHT 2025, ALL RIGHTS RESERVE 4
