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