Accounting Examen
26. A hospitality company is the maker of a $20,000 note to be paid in monthly payments of $1,000 each. The first payment is made on October 1. How will the note be represented on the balance sheet for December 31?
$12,000 current liability, $5,000 long-term liability
22. A hospitality company buys an existing hotel and pays $35,000 more than the fair market value of the hotel's assets. The $35,000 would be recorded in which account?
Goodwill
88. Which of the following statements about barcode technology is TRUE?
Hospitality businesses can use barcode technology to control the inventory of certain products.
2. Which of the following statements about the double-entry system of accounting is TRUE? A) If more than two bookkeeping accounts are affected by a transaction, the sum of the debit amounts and the sum of the credit amounts must be equal. B) A debit will add to an account, while a credit will subtract from an account. C) A credit entry adds to an account, while a debit entry subtracts from an account. D) For every plus to an account, there must be a corresponding minus to another account.
If more than two bookkeeping accounts are affected by a transaction, the sum of the debit amounts and the sum of the credit amounts must be equal.
69. Which of the following hotel expenses are classified as occupation costs on the Summary Operating Statement?
Insurance
24. How is the initial cost of purchasing linen and uniforms accounted for on a hotel's balance sheet?
It is directly reduced by a depreciation factor.
38. Which of the following statements about the Depreciation expense account is TRUE?
It is set to zero at the end of the
11. Which of the following tasks must an entrepreneur undertake before beginning his or her own hospitality business?
Prepare a feasibility study.
35. Under a periodic inventory system, direct purchases are recorded in the account called: .
Purchases.
82. What is the underlying principle of an accrual system of accounting? A) Revenue is recorded only after a pre-established dollar amount of payments has been accrued. B) Revenue is recorded when earned, and expenses are recorded when incurred. C) Revenue is recorded when checks and credit card payments clear the bank, and expenses are recorded when payment amounts are deducted from the hotel's accounts. D) Revenue is recorded only when payment is received, and expenses are recorded when they are paid.
Revenue is recorded when earned, and expenses are recorded when incurred.
32. Which of the following is an account found in the revenue classification of a classified statement of income?
Room Sales
72. What is the formula used to calculate the average room rate for all paid occupied rooms in a hotel? A) (Rooms Revenue - Expenses) ÷ Paid Rooms Occupied B) Rooms Revenue ÷ Paid Rooms Occupied C) Paid Rooms Occupied ÷ Rooms Available D) Cost of Sales ÷ Rooms Revenue
Rooms Revenue ÷ Paid Rooms Occupied
21. Of the following current assets, which is considered the most liquid?
Short-term Investments
98. What is the difference between simple interest and compound interest?
Simple interest is based only on principal, while compound interest is based on both principal and accrued interest
72. How do hotels with casino departments account for gaming revenue? A
The Complimentary Allowances account is used if casino revenue is composed of both gaming revenue and complimentary items.
33. For a dinner at a restaurant, a guest pays $20 cash plus a 6-percent state sales tax. This business transaction creates which of the following events? A) The Food Sales account is increased by $20. B) The Cash account is increased by $20. C) The Food Sales account is increased by $21.20. D) The Sales Tax Payable account is decreased by $1.20.
The Food Sales account is increased by $20.
34. To his dinner bill of $36, a guest at a hotel restaurant adds $7to his credit card draft for a server's tip. Which of the following events does this transaction create?
The Food Sales account is increased by $36.
74. How does the Summary Operating Statement differ from the external income statement?
The Summary Operating Statement does not report income taxes, depreciation, amortization, or interest.
3. Which of the following begins the accounting process? A) the bookkeepers in a hospitality business's accounting department B) a business transaction C) the accountant, who assigns all tasks to the staff D) receipt of an invoice from a vendor
a business transaction
75. Which of the following is a tangible asset that can be depreciated?
a computer
19. What type of account is an Allowance for Doubtful Accounts?
a contra-asset account
78. Which of the following is an intangible asset?
a covenant not to compete agreement
26. A bond indenture is:
a legal document explaining the rights and privileges of the owner and any special terms and features.
39. The collective system of bookkeeping accounts kept by a business, which shows account balances, is Referred to as the:
general ledger.
18. Items shown under Current Assets on a balance sheet are usually listed in the order of their: A) importance. B) liquidity. C) age. D) value.
liquidity.
28. With regard to bonds, what is the principal reason a hospitality company establishes a sinking fund?
to make a bond offer more attractive
85. From a company's standpoint, the most desirable opinion of its annual report it can receive from an auditor or auditing firm is a clean or __________ opinion.
unqualified
99. Assume a hotel takes out of loan of $5,000 at 6 percent simple annual interest that is due in 100 days. The lender uses an ordinary year. How much is due at the end of the 100 days?
$5083.33 (5000+((5000*0.06*100)/360)
94. If a business has fixed costs of $38,000 and a variable cost percentage of 65 percent, what is its breakeven point?
108571
15. If net revenue equals $40,000, cost of sales $15,000, and operating expenses $10,000, gross profit would equal _________. A) $15,000 B) $25,000 C) $30,000 D) $45,000
15000
40. Which of the following indicates a normal balance for the specified account classification? A) A credit balance is normal for an asset account. B) A credit balance is normal for an expense account. C) A debit balance is normal for a liability account. D) A credit balance is normal for a revenue account.
A credit balance is normal for a revenue account.
10. Which of the following statements about a feasibility study is TRUE?
A feasibility study can be long or short and take many forms.
60. The amount cashiered from a single-price, sales-tax-included transaction for alcoholic beverages is $9.54.If this transaction is for the purchase of two identical beverages and the sales tax rate is 6 percent, what is the price of each beverage?
4.5
7.If owner's equity is $200,000 and liabilities are $320,000, how much are assets worth?
520000
62. A restaurant uses a standard food cost percentage method of computing the cost of officers' meals. What would the cost of officers' meals be if officers' checks totaled $3,000 at menu prices and the standard food cost is 30 percent?
900
76. Accountants for Big-Little Hotels use the straight-line method to depreciate the company's tangible long-lived assets. Assume the following information about a certain tangible long-lived asset: Asset's cost $20,000 Asset's future salvage value estimate $2,000 Asset's useful life 5 years Based on this information, the asset's book value at the end of Year 3 would be:
9200
96. Given the following information, what is the control total of a cashier's daily report? Food sales $600 Sales tax $30 Tips charged $15 Customer collections $150 Change fund (start) $200
995
87. Which of the following statements about credit cards and their use in the hospitality industry is TRUE? A) In most hospitality businesses, credit cards are the second most widely used form of payment, right behind cash. B) A business must have a merchant account in order to accept credit cards. C) All hospitality businesses must accept credit cards. D) All of the above are true statements.
A business must have a merchant account in order to accept credit cards.
20. Any transactions involving in-house credit cards are included in: A) Notes Payable. B) Cash. C) Accounts Receivable. D) Goodwill.
Accounts Receivable.
54. Why are adjusting entries necessary? A) They bring the general ledger into compliance with the revenue recognition principle and the matching principle. B) Income statements would be incomplete without them. C) They bring items up to date that normally are not accounted for in day-to-day transactions. D) All of the above are correct.
All of the above are correct.
48. Which of the following best distinguishes an electronic cash register (ECR) from a point-of-sale (POS) terminal? A) ECRs have a standard keyboard, while keyboards of programmable POS terminals can be customized for particular applications. B) An ECR must be connected a remote central processing unit. C) ECRs are not programmable. D) An ECR is a stand-alone hardware computer system.
An ECR is a stand-alone hardware computer system.
40. How is a business's payment of an open account entered in the accounting records?
Both Cash and Accounts Payable are decreased.
38. When the owner of a proprietorship invests personal cash in the business, which accounts are affected? A) Capital and Cash B) Retained Earnings and Donated Capital C) Cash and Retained Earnings D) Additional Paid-In Capital and Cash
Capital and Cash
40. A hotel receives a check payment from a guest who had charged services to an open account. How is this transaction recorded in the accounting record?
Cash is increased and Accounts Receivable is decreased.
32. A hospitality corporation issues common stock at par value of $5 per share. A total of 25,000 shares are sold at $20 per share. How would this stock issue be represented on the balance sheet?
Common Stock Issued: $125,000; Additional Paid-In Capital: $375,000
49. The computerized module that automatically retains data from the previous year and the year prior to the previous year is called the: A) Starting Balances module. B) Journal and Posting module. C) Comparative Data module. D) Financial Statements module.
Comparative Data module
36. Under a perpetual inventory system, direct purchases are recorded in the _________ account.
Cost of Sales
20. Under which of the following categories are operating supplies on hand included on the balance sheet?
Current Assets
56. How does the posting process for entries from the sundry column differ from the posting process for other columns in special journals?
Each item entry must be posted to the general ledger individually.
84. Which of the following statements about merchant accounts is TRUE?
Most merchant accounts provide support for all of the major credit cards.
66. Restaurant income from such sources as salvage and waste sales and banquet room rentals is recorded to which of the following income statement line items? A) Marketing B) Occupancy C) Other Income D) Utility Services
Other Income
63. Restaurants that add a service charge to customer checks must record such payments to:
Other Income.
86. Which of the following statements about point-of-sale (POS) systems is TRUE?
POS systems can interact with check-guarantee services to authenticate checks.
54. After they have been manually recorded, footed, and crossfooted, special journals become input to the accounting software's __________ module. A) Financial Statements B) Posting C) Comparative Data D) Chart of Accounts
Posting
80. Why might the dollar values reported in financial statements not necessarily represent money transactions?
The accrual system of accounting ignores whether cash is present in a business transaction.
100. Assume an invoice dated August 10 is received on August 12 for items received on August 8. It has the discount term 2/10,n/30 PROX on it. The total of the invoice is $180, which includes $150 for merchandise and $30 for freight. Which of the following statements is true? A) The total due is $177.00 if payment is made by August 22. B) The total due is $176.40 if payment is made by August 18. C) The total due is $176.40 if payment is made by August 20. D) The total due is $177.00 if payment is made by September 10.
The total due is $177.00 if payment is made by September 10.
100. Assume an invoice dated March 28 is received on March 29. It has the discount term 2/10,n/30 EOM on it. The total of the invoice is $225, which includes $200 for merchandise and $25 for freight. Which of the following statements is TRUE?
The total due is $221.00 if payment is made by May 10.
100. How are the discount terms 2/10,n/30 and 2/10,n/30 ROG different? A) The first includes freight charges in the discount, while ROG does not. B) ROG dates depend on whether the invoice is dated before or after the 25th of any given month. C) The two terms can differ with regard to the starting date used to qualify for discounts. D) ROG offers multiple discount levels and periods.
The two terms can differ with regard to the starting date used to qualify for discounts.
42. Which of the following are increased by credits?
liability, equity, and revenue accounts
99. With regard to interest calculation, what is an exact year? A) an accounting convention that assumes a year is 360 days B) a non-leap year (that is, 365 days) C) a measuring tool that applies to simple interest but not compound interest. D) any year in which a business entity pays or earns interest
a non-leap year (that is, 365 days)
7. A company's tax and cost accounting functions are typically performed by: A) a certified public accountant. B) an audit committee. C) a private accountant. D) the company's bookkeeping department.
a private accountant.
52. An accounting cycle differs from an accounting system in that it is:
a sequence of accounting procedures.
46. In which of the following is it necessary to sign the account balance? A) the accounts payable subsidiary ledger B) the accounts receivable subsidiary ledger C) a three-column account format D) a four-column account format
a three-column account format
94. An internal control system is a set of procedures designed to:
accomplish all of the above.
43. When special journals are part of an operation's accounting system, which of the following entries are usually made in the general journal? A) cash receipts B) adjustments C) purchases D) sales tax
adjustments
15. Dividends Declared, as shown on a statement of retained earnings, includes:
all dividends declared during the current accounting year regardless of whether they are paid or unpaid.
42. Which of the following would provide continued accounting function in the event of a power failure that disables a computerized system? A) manual procedures B) a backup computer system C) a battery backup to the system D) all of the above
all of the above
68. A hotel's Rooms revenue account includes which of the following? A) payments from no-shows B) charges for linens C) rentals of guestrooms D) all of the above
all of the above
96. A hotel's cash disbursements are made from which of the following? A) checking accounts B) house banks C) petty cash funds D) all of the above
all of the above
35. The expense classification includes those accounts that represent:
all of the above.
82. A ratio analysis of a balance sheet is useful in evaluating: A) a company's ability to efficiently and profitably use its assets. B) a company's ability to pay all its debt. C) a company's ability to pay its short-term debt. D) all of the above.
all of the above.
41. The expense method of accounting for supplies records:
all operating and office supply purchases in expense accounts.
70. Undistributed operating expenses: A) include the salaries, payroll taxes, and benefits for executive managers who oversee the entire business. B) are those that are not easily identified with any specific revenue center. C) are those that are incurred by support centers. D) are those that are incurred by a specific revenue center but not charged to that center.
are those that are not easily identified with any specific revenue center.
4. Which of the following account classifications comprises cash, possessions, and purchased rights? A) liabilities B) expenses C) assets D) equity
assets
5.How are accounts in the fundamental accounting equation affected when the sole proprietor of a business invests more cash in the business?
assets increase, liabilities remain the same, and owner's equity increases
39. Which of the following account classifications generally also have contra accounts? A) accrued expenses B) liabilities and capital expenditures C) none of the above D) assets, equity, and revenue
assets, equity, and revenue
56. What is the function of closing entries?
at year-end, setting to zero all income statement account balances, withdrawals, and dividends declared (if any) to prevent these balances from being carried forward to the next yea
90. The process that a hospitality business uses to verify that a customer's credit card account is in good standing is called:
authorization.
16. Which of the following is a financial statement that provides important information regarding the financial position of a hospitality business on a given date? A) balance sheet B) operating budget C) interim statement D) statement of income
balance sheet
57. Which of the following appear on the post-closing trial balance?
balance sheet accounts
1.It is important for hospitality managers to understand basic accounting practice so that they can:
better understand the information on financial statements and thus make better economic decisions.
76. Which of the following is the term for the result of the cost of an asset less its accumulated depreciation? A) book value B) salvage value C) useful value D) useful life
book value
29. Which of the following accounts in a proprietorship form of business reflects the equity transactions between the business and its owner and represents the owner's financial interest in the business?
capital
7.The cash accounting method records the results of business transactions only when:
cash is received or paid out.
9.The conservatism principle is best reflected in accounting when:
certain current assets are reduced to their market values when market value is lower than cost.
89. When a credit card holder disputes a charge on his or her credit card statement, the bank that issued the credit card may take the money from the merchant's account, sometimes without first consulting the merchant. This is called a:
chargeback.
84. Dividing a line item amount on an income statement by net sales is an example of: A) comparative analysis. B) ratio analysis. C) profit-cost analysis. D) common-size analysis.
common-size analysis.
34. Which of the following is an account in the expense classification of a classified statement of income?
cost of sales
28. Another name for a bearer bond is a: A) registered bond. B) callable bond. C) coupon bond. D) term bond.
coupon bond.
26. Advance deposits are initially recorded as: A) accrued expenses. B) current assets. C) revenue. D) current liabilities.
current liabilities.
92. Rent is an example of a __________ expense.
fixed
92. For which time period should managers of a new hospitality business forecast sales?
for each month of the business year
65. In beverage operations, an analysis by type of drink helps the owner:
forecast inventory.
56. An adjusting journal entry that records issues from the storeroom for a restaurant using the perpetual inventory system would: A) credit liabilities and debit assets. B) credit Cost of Food Sales and debit Food Inventory. C) debit Cost of Food Sales and credit Food Inventory. D) decrease Cost of Food Sales and increase Food Inventory.
debit Cost of Food Sales and credit Food Inventory.
30. Which of the following reduces the Retained Earnings account of a corporation? A) payment of dividends B) declaration of cash dividends C) issuance of common stock D) issuance of treasury stock
declaration of cash dividends
98. Any reconciliation in the books section of a bank reconciliation form requires corrective action in the hotel's checkbook and the hotel's _________.
general ledger
70. By analyzing operating ratios, hospitality managers are able to:
determine if the operation's efficiency and its sales efforts require further analysis or corrective action.
68. Information regarding average food sales per seat is important to a restaurateur because he or she can:
determine if the size of the facility is in line with customer demand.
29. When a bond at original issue is sold at more than its face value because its stated interest rate is more than current market rates, it is said to be sold at a:
discount.
97. Payments from house or petty cash funds should always be supported by:
documentary evidence.
64. Which of the following is a direct operating expense/are direct operating expenses?
employee transportation
50. The Starting Balances module of a computerized general ledger is programmed to allow users to:
enter starting balances when converting from a manual system to a computerized system.
90. Who should put together the budget for a business?
everyone at the business with planning and financial responsibilities because they will be responsible for performing within the budget
9. The generally accepted accounting principle of matching requires that: A) accounting adjustments be made at least quarterly. B) balance sheet accounts and income statement accounts match. C) expenses be matched with the revenues they generate. D) hospitality businesses use the cash basis of accounting.
expenses be matched with the revenues they generate.
25. Which of the following is a definition of accrued expenses? A) expenses that were incurred and recorded in a previous accounting period but have not been paid B) expenses that have been incurred but have not been paid or recorded as of the end of the accounting period C) expenses that were recorded in a previous accounting period, have since been incurred, but have not yet been paid D) expenses that were prepaid and recorded in a previous accounting period but were actually incurred in the current accounting period
expenses that have been incurred but have not been paid or recorded as of the end of the accounting period
9.Which generally accepted accounting principle applies to the valuation of liabilities and assets under current market conditions?
fair value
4.Which of the following divisions of accounting is involved with recording, classifying, and summarizing business transactions?
financial accounting
82. On a hotel income statement, net sales less cost of sales produces a subtotal called: .
gross profit.
67. Which of the following is/are classified as undistributed operating expenses?
guest laundry
62. According to the Uniform System of Accounts for Restaurants, in regard to food sales accounting, sales of soft drinks are included in the food sales account:
if the restaurant doesn't serve liquor, beer, and wine.
6.The type of accounting that involves reviewing and evaluating documents, records, and control systems is called:
internal auditing.
2.Which of the following is an example of an external user of a hospitality business's financial information? p06
investors
22. One of the ways a note receivable differs from an account receivable is that a note receivable:
is legally transferable between parties by endorsement.
44. Depending on the specific needs of a business, a separate special journal is designed for each: A) type of transaction the business normally undertakes. B) product or service marketed. C) major repetitive activity or event. D) account classification.
major repetitive activity or event.
81. The purpose of an audit conducted by a public accountant is to: A) make sure that the company's financial statements are presented fairly and conform with generally accepted accounting principles. B) ensure that the company is not preparing accounting records fraudulently. C) work on behalf of potential stockholders to evaluate whether the company is worth investing in. D) determine whether management is competently running the company.
make sure that the company's financial statements are presented fairly and conform with generally accepted accounting principles.
24. Stocks and bonds must be classified as investments if:
management intends to hold them for longer than 12 months.
8.Credit card fees theoretically should be recorded as expense during the accounting period in which the selected sale is recorded, according to the _________ principle of accounting.
matching
3.How often are financial statements usually prepared?
monthly
45. The format of general journals works well for recording summaries of business transactions, such as __________ totals. A) daily B) monthly C) quarterly D) annual
monthly
14. The statement of income provides information revealing: A) the financial position of a company on a given date. B) operational strategies for the next accounting period. C) net income for a specified period. D) planned expenditures over a specified future period.
net income for a specified period.
12. How is gross profit calculated?
net revenue minus cost of sales
83. If an accounting firm is impeded by the company's management or staff during its audit, so that it was not able to perform a thorough audit, it will issue a(n) __________ opinion.
no
16. Which of the following is a definition of current liabilities?
obligations that require settlement within 12 months of the balance sheet date
42. The asset method of accounting for supplies generally records __________ in an asset account.
office supply purchases
15. In a hotel's statement of cash flows, cash generated from rooms, the dining room, the gift shop, and other departments would be recorded under the __________ activities section.
operating
37. Payroll and related costs such as payroll taxes are categorized as __________ expenses.
operating
88. The network that links an online buyer's and online seller's respective banks so that a business transaction can occur over the Internet is called a(n):
payment gateway.
96. On the cashier's daily report, what does the item Customer Collections represent? A) the total tips paid by guests during the shift B) cash paid from the cash drawer during a shift C) the total of the guest checks for the shift D) payments on open account received from guests
payments on open account received from guests
86. Which of the following components of a point-of-sale system displays purchase amounts to customers?
pole display device
41. One of the principal and most welcome advantages of a computerized accounting system is its capability to automatically: A) journalize transaction data. B) execute the steps of the bookkeeping function, freeing the accountant or bookkeeper from tedious adherence to procedures. C) keep all transactions and accounts current. D) post data to specified bookkeeping accounts.
post data to specified bookkeeping accounts.
1.What is the major role of the accounting function in a hospitality operation?
providing useful and timely information
48. The principal attribute of an online accounting system is its:
real-time capability.
30. An owner's withdrawal of cash, inventory, or other assets from a proprietorship form of business has the effect of:
reducing the proprietor's equity in the business.
28. When a company issues a bond in the name of the owner, it is issuing a __________ bond.
registered
66. The Other Operated Departments line item in the revenue section of a hotel's external income statement reports revenue from:
revenue centers.
57. The purpose of a reversing entry is to: A) reconcile trial balances. B) adjust the owner's equity account in a sole proprietorship. C) balance accrued income accounts. D) reverse adjusting entries.
reverse adjusting entries.
32. A sale is recognized and recorded in the accounting records at the time: A) services are rendered or goods are delivered. B) the customer's check or credit card clears. C) payment is made by check or cash. D) the invoice is delivered to the customer.
services are rendered or goods are delivered.
67. Entries for china, glassware, silver, linen, and uniforms distinguish a restaurant's __________ from that of other industries.
statement of cash flows
13. The financial statement that provides information about cash receipts and payments concerning the operating, investing, and financing activities of a business is called the:
statement of cash flows.
58. To verify the accuracy of the computerized financial statements, an accountant can manually calculate a company's net income or loss on a worksheet by:
subtracting expenses from revenue.
80. Notes to the financial statements (also called footnotes) enable the accountant to:
supplement the dollar amounts shown on the statements.
60. A restaurant income statement is accompanied by numerous __________ that itemize the various components of a single line item on the statement. A) notes to the financial statements B) supporting schedules C) subsidiary journals D) footnotes
supporting schedules
74. Depreciation is a method that allocates the cost of assets:
that are tangible and have a useful life of more than one year.
54. The two software modules of a computerized general ledger that are used mainly to set up the system are:
the Chart of Accounts module and the Starting Balances module.
58. The major difference in the format of the income statement for a fast-food restaurant compared to that of a full-service restaurant is:
the addition of a paper goods line item to cost of sales.
74. In a hotel-owned-and-operated casino operation, what value (for accounting purposes) is used to account for complimentary items provided to guests? A) the cost of the items plus any attached promotional fees B) the approximate retail value of the items C) the actual cost of the items D) all of the above are acceptable cost estimations
the approximate retail value of the items
11. Which of the following is an advantage of owning a hospitality franchise right?
the business's name likely is already familiar to consumers.
6. What is equity? A) the overall financial position of a business B) the claims of owners on the assets of a business C) the total amount owed to a business from customers D) anything a business owns that has commercial or exchange value
the claims of owners on the assets of a business
62. A restaurant's costs of sales for food and beverages are accounted for independently and represent: A) the cost of food or beverage used to generate a customer sale plus the cost of officers' checks. B) the cost of food or beverage used to generate a customer sale plus the meal service charge. C) the cost of food or beverage used to generate a customer sale plus the cost of employee meals. D) the cost of food or beverage used to generate a customer sale.
the cost of food or beverage used to generate a customer sale.
18. What is an asset's book value?
the cost of the asset less its accumulated depreciation
43. Which of the following determines the normal balance of an account?
the difference between total credits and total debits
78. The three basic financial statements in a financial statement package are:
the income statement, the balance sheet, and the statement of cash flows.
14. Revenue is:
the result of products and service sold to guests.
86. When an auditing firm certifies that a company's financial statements present fairly, in all material respects, the company's financial position, results of operations, and cash flows in conformity with generally accepted accounting principles, this is called a(n) __________ opinion. A) qualified B) no C) adverse D) unqualified
unqualified
93. Cost of beverage sold is an example of a __________ expense. A) fixed B) semi-variable C) semi-fixed D) variable
variable
93. Cost of food sold is an example of a __________ expense.
variable
94. Which expenses act in a parallel pattern with volume? A) semi-fixed B) fixed C) variable D) semi-variable
variable
52. The purpose of a trial balance is to:
verify that the sum of debits equals the sum of credits in the general ledger.
50. When a business is considering which general ledger accounting software to purchase, it is worthwhile to: A) consider cost factors first. B) visit an actual business that uses the software to see the software in operation. C) choose the software a colleague in another company uses and recommends. D) listen to what the software salesperson says is the best buy.
visit an actual business that uses the software to see the software in operation.
64. The largest controllable operating expense for a restaurant is: A) wages and salaries. B) utility services. C) direct operating expenses. D) occupancy expenses.
wages and salaries.
52. Under cash basis accounting, revenue is recorded: A) when cash is received. B) only when all checks and credit cards have been processed. C) at the time the bank posts it to the business's account. D) during the period in which the transaction occurs.
when cash is received.
36. Under a periodic inventory system, inventory must be physically taken:
whenever the business prepares financial statements.
91. The process of preparing each year's budget from scratch, rather than building on the previous year's budget numbers, is called:
zero-base budgeting.