Question 1

What does the balance sheet consist of?

Accepted Answer

The balance sheet shows assets, liabilities, and owner's equity.

Question 2

What is the formula for calculating food cost?

Accepted Answer

Food cost is calculated in the following manner: ((beginning inventor y ($) + purchases) - ending)/sales

Question 3

Are the following fixed or variable costs?

Accepted Answer

a.insurance-fixed
b.hourly payroll-variable c.loan payments-fixed
d.rent-fixed unless there is a required percentage of sales to be paid e.equipment repairs-variable
f.advertising-can be either, depending on how it is budgeted (either as a percentage of sales or a straight dollar amount)

Question 4

List three of the most committed violations in reporting to the IRS.

Accepted Answer

a.deliberately underreporting or omittin

Question 5

What does COGS stand for and how is it calculated?

Accepted Answer

COGS stands for cost of goods sold.It is

Question 6

What information does the profit and loss (P&L) statement pro- vide to a business owner?

Accepted Answer

The P&L shows all sales and ex

Question 7

Define variable and fixed costs and name three components of each.

Accepted Answer

A variable cost is a cost that fluctuate

Question 8

What is the accrual method of accounting?

Accepted Answer

Sales and expenses a

Question 9

Define the following:

Accepted Answer

a.current assets-an asset that can be co

Question 10

Define the break-even sales point of a business.

Accepted Answer

The break-even sales point is

Question 11

Explain a declining budget.

Accepted Answer

A declining budget is normally used to t

What does the balance sheet consist of?

What is the formula for calculating food cost?

Are the following fixed or variable costs?

List three of the most committed violations in reporting to the IRS.

What does COGS stand for and how is it calculated?

What information does the profit and loss (P&L) statement pro- vide to a business owner?

Define variable and fixed costs and name three components of each.

What is the accrual method of accounting?

Define the following:

Define the break-even sales point of a business.

Explain a declining budget.

Menu Design and Engineerin

Marketing: Research Analysis and Building a Customer Base Chapter Overview

Site Selection

Business Plan

Building the Restaurant

Sanitation Management

Restaurant Management and Operations Analysis

Customer Service

Human Resource Management

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Exam 5: Finance and Accounting

What does the balance sheet consist of?

What is the formula for calculating food cost?

Are the following fixed or variable costs?

List three of the most committed violations in reporting to the IRS.

What does COGS stand for and how is it calculated?

What information does the profit and loss (P&L) statement pro- vide to a business owner?

Define variable and fixed costs and name three components of each.

What is the accrual method of accounting?

Define the following:

Define the break-even sales point of a business.

Explain a declining budget.

Menu Design and Engineerin

Marketing: Research Analysis and Building a Customer Base Chapter Overview

Site Selection

Business Plan

Building the Restaurant

Sanitation Management

Restaurant Management and Operations Analysis

Customer Service

Human Resource Management

Filters