2025 HIC EXAMINATION QUESTIONS AND
ANSWERS – FULLY VERIFIED & ACCURATE
◉ Which of the following account/accounts relate to Depreciation
Expense? Answer: property and equip
◉ A decrease in an asset account is recorded as a _________, and an
increase in a liability account is recorded as a _______. Answer: credit;
credit
◉ When the purchase of an asset is paid for by signing a Note
Payable, which statement below correctly represents the effect of
this transaction on the "fundamental accounting equation"? Answer:
Assets increase, liabilities increase, and owners' equity remains the
same
◉ The owner of a restaurant decides to take some steaks from the
restaurant for his/her personal use. The cost of the steaks should be
recorded to the owner's equity section of the restaurant's balance
sheet based on the _____________ principle of accounting. Answer:
business entity
◉ Which of the following events would be recorded as an
"accounting event"?
, a. A guest enters the dining room and is seated by a host
b. A guest complains to front office representatives about a dirty
guestroom
c. A person makes a reservation but their credit card is not charged
d. A guest has a banquet event at the hotel Answer: guest has a
banquet event at the hotel
◉ One of the advantages of the corporate form of business
organization is: Answer: limited liabiity
◉ Which of the following accounts is an asset account? Answer:
prepare insurance
◉ Adjusting entries involve: Answer: both balance sheet and income
statement accounts
◉ Which of the following accounts is increased by a debit entry?
Answer: marketing expense
◉ Which of the following accounts is not a revenue account?
Answer: advance deposit
◉ Adjusting entries consist of: Answer: both expense accruals and
revenue deferrals
ANSWERS – FULLY VERIFIED & ACCURATE
◉ Which of the following account/accounts relate to Depreciation
Expense? Answer: property and equip
◉ A decrease in an asset account is recorded as a _________, and an
increase in a liability account is recorded as a _______. Answer: credit;
credit
◉ When the purchase of an asset is paid for by signing a Note
Payable, which statement below correctly represents the effect of
this transaction on the "fundamental accounting equation"? Answer:
Assets increase, liabilities increase, and owners' equity remains the
same
◉ The owner of a restaurant decides to take some steaks from the
restaurant for his/her personal use. The cost of the steaks should be
recorded to the owner's equity section of the restaurant's balance
sheet based on the _____________ principle of accounting. Answer:
business entity
◉ Which of the following events would be recorded as an
"accounting event"?
, a. A guest enters the dining room and is seated by a host
b. A guest complains to front office representatives about a dirty
guestroom
c. A person makes a reservation but their credit card is not charged
d. A guest has a banquet event at the hotel Answer: guest has a
banquet event at the hotel
◉ One of the advantages of the corporate form of business
organization is: Answer: limited liabiity
◉ Which of the following accounts is an asset account? Answer:
prepare insurance
◉ Adjusting entries involve: Answer: both balance sheet and income
statement accounts
◉ Which of the following accounts is increased by a debit entry?
Answer: marketing expense
◉ Which of the following accounts is not a revenue account?
Answer: advance deposit
◉ Adjusting entries consist of: Answer: both expense accruals and
revenue deferrals
