BOMI BUDGETING AND ACCOUNTING
FINAL EXAM WITH CORRECT QUESTIONS
WITH CORRECTRY ANALYZED ANSWERS
(ACTUAL EXAM) ALREADY GRADED A+
LATEST 2024 – 2025
According to general practice, which individual at Peachtree is responsible for
completing a high level, but not a detailed review of tenant financial statements?
- ANSWERS-a. the owner
b. the controller
c. the property manager
d. the chief financial officer
b. the controller - ANSWERS-
,A common ratio Hilda could use to determine earning power for Peachtree
(as a C corporate structure) would be ..Blank..comparative statements. -
ANSWERS-a. variable-sector
b. common-sector
c. variable-size
d. common-size
Specify functions incorporated in the budgeting process. (4) - ANSWERS-
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. - ANSWERS-
Describe the accounting cycle types most common to commercial real estate
management business (5) - ANSWERS-revenue cycle and the expenditure cycle
Which key components make up the bookkeeping process? (2) - ANSWERS-
recording and classifying transactions is known as bookkeeping.
Describe the roles filled by a accountant (3) - ANSWERS-Accounting is a system of
summarizing, interpreting, and communicating financial data.
,What are the primary functions associated with accounting ? (4) - ANSWERS-
Accounting is the next step in the process. Accounting is the system of
summarizing, interpreting, and communicating financial data.
What are the three summary account types ? (9) - ANSWERS-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. - ANSWERS-
How are debits and credits applied to fundamental accounting equation ? (11-12)
- ANSWERS-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 - ANSWERS-
explain the relationship between the balance sheets and summary accounts (15) -
ANSWERS-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.
what are the generally accepted accounting principles ? (GAAP) (19) - ANSWERS-
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. -
ANSWERS-These standards are codified by the Financial Accounting Standards
Board (FASB).
What are international accounting standards ?(19) - ANSWERS-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) -
ANSWERS-property industry internal reporting includes , tenant collections,
vendor payments, and monthly operating results.
Describe standard financial statements that businesses use? (20) - ANSWERS-
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.
What are common accounting methods used for recording financial transactions ?
(21) - ANSWERS-Accounting and financial reports can be prepared on a cash,
accrual, or modified accrual (also known as hybrid) accounting basis.
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