Finance Chapter 2 Quiz

Accounting is divided into two parts

financial account and managerial accounting

T/F: On the balance sheet, total liabilities equal total assets plus total equity

False

T/F: The daily payroll report summarizes revenues earned by each department within an operation

False

T/F: The goal of financial accounting is to provide more timely operating results related to revenues and expenses to help management maximize the operating performance of the business

False

T/F: The going concern principle requires businesses to assume they will continue to operate into the foreseeable future

True

T/F: The three best-know systems of accounts used in the hospitality industry are the systems for lodging, food service and club management

True

The Financial Accounting Standards Board and the Securities and Exchange Commission develop rules and regulations known as ___________ that govern all accounting and financial reporting

generally accepted accounting principles

Retained earnings

is the prior years profits that have not been paid out to owners as dividends

The income statement is often referred to as

profit and loss statement

The food and beverage menu abstract tracks:

the popularity and profitability of menu items