lesson 2 Flashcards
What is cost accounting concerned with?
The classifications, recording, and reporting of business expenses.
Cost accounting focuses on analyzing costs related to various business activities.
How is a cost or expense defined in cost accounting?
As ‘time or resources expended by the business.’
This definition emphasizes the resources that go into business operations.
What do cost accountants determine costs by?
Departments, business function or area of responsibility, and the products and services sold by the business.
This helps in identifying where costs are incurred within the organization.
What is a tax?
A charge levied by a governmental unit on income, consumption, wealth, or other basis.
Taxes are a key source of revenue for governments.
What does tax accounting concern itself with?
The proper and timely filing of tax payments, forms, or other required documents.
This ensures compliance with tax laws and regulations.
What do professional tax accounting techniques ensure?
That businesses properly fulfill their legitimate tax obligations.
This is crucial for avoiding penalties and maintaining good standing with tax authorities.
Name some types of taxes hospitality managers may be responsible for.
- Occupancy taxes
- Sales taxes
- Payroll taxes
These taxes are common in the hospitality industry and require careful management.
What is an internal audit?
An independent verification of financial records.
It also includes the regulation of auditors tasked with verifying a company’s financial health.
What is the primary concern of the auditing branch of accounting?
The accuracy and truthfulness of financial reports.
This is essential for maintaining trust and integrity in financial statements.
What is an external audit?
An independent assessment of a company’s compliance with standardized accounting practices conducted by individuals or firms hired specifically for this purpose.
External audits provide an objective view of the company’s financial status.
