Week 5 Financial Accounting

The accounting process is used to analyze and record transactions in a hospitality operation.

• True

• False

The accounting cycle is repeated every time financial statements are prepared.

• True

• False

An asset account refers to money or financial obligations owed by the business.

• True

• False

"A future benefit exists for the company as it is used in operations."

• Liabilities

• Assets

• Owner's Equity

• Notes Payable

Accounts Payable

• Current Asset

• Fixed Asset

• Current Liability

• Owner's Equity

Investments made by the owner into the business

• Current Asset

• Fixed Asset

• Current Liability

• Owner's Equity

Debits are always recorded on the right-side of a T-Account

• True

• False

Assets = $10,000, Liabilities = $8,000, Owner's Equity = ?

• $4,000

• $10,000

• $2,000

• $18,000

Assets = ?, Liabilities = $5,000, Owner's Equity = $24,000

• $24,000

• $29,000

• $5,000

• $28,000