Deck 12: Cash Transactions

Question 1

Cash is the method most often used by guests to settle their folio accounts; checks are a close second in importance.

Answer 1

False

Question 2

A strong U.S. currency aids tourism at home (in the U.S.A.) by deterring U.S. citizens from going abroad.

Answer 2

False

Question 3

Most city-ledger accounts are not actual, living persons.

Answer 3

True

Question 4

Tour-group coupons accepted by the restaurant cashier in payment for the lunches of tour members are charged eventually on the individual folios of each guest.

Question 5

Hotel cashiers are more likely to lose money from accepting counterfeit bills than they are from being robbed.

Question 6

Which position in the hotel would likely NOT be discussed in a chapter dealing with the handling of cash and receipts?

A) Executive general manager
B) Front-office cashier
C) General cashier
D) Food servers accepting tips on credit cards
E) Night auditor

Question 7

A front-office cashier would most likely pay out cash to a guest who had:

A) A debit balance at the time of check-out
B) A credit balance at the time of check-out
C) Been a previous city-ledger account with the hotel
D) Paid for the room in advance
E) Either a or b depending on the circumstances

Question 8

Which item is NOT a member of the set?

A) Ledger
B) Over or short
C) Cashier's report
D) Due bank
E) Turn-in

Question 9

Among the countries NOT using the Euro are:

A) Austria
B) Germany
C) France
D) Australia
E) Both A and C

Question 10

The "one-two-three steps"for detecting worthless checks are:

A) Collect the fee; employ cameras; ask for a fingerprint
B) Verify room number; use a "MoneyChecker;" ask manager if uncertain
C) Check for: perforation; the Federal Reserve district number; magnetic ink on the routing code
D) Ask: Is the routing code on the bottom of the check; are the check's sides smooth; is the amount in even numbers
E) There are no "one-two-three steps" for detecting worthless checks

Question 11

Explain to a foreign guest (and show your work) how the $220 folio balance will be settled at check-out if she tenders a 1,000 noddles (N) currency, which the hotel accepts at par value (N1 = $0.20).

Question 12

One major difference between a cashier in the front office as opposed to a cashier in the restaurant (or any other department) is the direction in which cash flows. In the restaurant (and other departments), cash can flow in (receipts) and flow out (paidouts). In the front office, cash can only flow in (receipts). That's because any outflow (paidouts) at the front desk must be handled through the accounting department via the city ledger.

Question 13

In the restaurant (or any other department except front desk), net receipts equals gross receipts. At the front desk, net receipts equals gross receipts minus paidouts.

Question 14

Some hotels might ask their cashiers to drop (turn-in) their "imprest"petty cash vouchers at the end of each shift. Other hotels might ask their cashiers to drop (turn-in) their "imprest"petty cash vouchers only after they have reached a pre-determined limit (say $25). Therefore, it is conceivable that a cashier might begin a shift with a few dollars worth of petty cash vouchers left over from the previous day(s).

Question 15

According to industry research, there is more money in hotel cash drawers than is necessary for most cashiers to complete a normal level of cash transaction activities. Therefore, industry experts recommend managers identify how much cash is in each drawer and begin a campaign to slowly reduce the amount over time.

Question 16

One example of a cash paid-out made by the front office might be a tip to a hotel employee made on behalf of the guest.

Question 17

One example of a cash paid-out made by the front office might be returning a small amount of money to the guest from a credit remaining on the folio due to a larger cash deposit at check-in than was actually necessary to settle the guest account.

Question 18

Paying tips to employees on behalf of guests who later settle their bills with a credit card should be seen as an employee benefit. This is because the hotel is responsible for paying the merchant discount fee on the credit card payment (a few percentage points), which adds up over many employees and many years.

Question 19

One example of a cash paid-out made by the front office could actually be a small cash loan to the guest against their room folio.

Question 20

One example of a cash paid-out made by the front office could be to a concessionaire after a guest charged the concessionaire's services to the hotel room folio.

Question 21

At the end of the shift, a cashier's drawer should theoretically equal the total of starting bank plus net receipts.

Question 22

A cashier who has less money in his ending drawer than he should mathematically have after accounting for starting bank and net receipts is considered "over."

Question 23

Because hotels are members of the service sector of the economy, they are required by law (Sherman-Clayton Act) to accept international currency from roughly a dozen key trading partners. This requirement includes; the Euro, the Mexican Peso, and the Canadian Dollar.

Question 24

Although there are risks associated with accepting foreign currency (currency values can fluctuate substantially from day-to-day), some hotels turn this service into a profit center.

Question 25

In an effort to thwart counterfeit currency being passed to hotel cashiers, many properties require larger bills (say $50's or $100's) be tested with a dry mark counterfeit detection pen.

Question 26

Counterfeit detection pens work because they detect paper starch in phony currency. All real U.S. currency is made of linen and contains no paper starch.

Question 27

Two good rules-of-thumb with regard to accepting checks at a front office are; be extremely cautious with new checking accounts (characterized by checks with low serial numbers) and refuse to accept any check which has been altered, is illegible, or stale.

Question 28

Employees should be -trained to read traveler's checks carefully before cashing, because many traveler's checks issued in international currencies actually look quite like those issued in U.S. dollars.

Question 29

Cash settlements at the front desk account for almost two-thirds of all check-out transactions.

Question 30

The front office often serves as a source of cash for other departments. For example, if the dining room needed 20 pounds of butter right away, they would come to the front office and request a disbursement of imprest cash for the purchase.

Question 31

Which of the following words is inconsistent with the other words shown:

A) Due Bank
B) Due Back
C) Overage or Shortage Fund
D) Exchange
E) U-Owe-Me

Question 32

Today's U.S. currency contains a number of security features, including which of the following:

A) Off-center portrait with added detail
B) Color-shifting ink
C) Watermark visible when held to light
D) Security thread whose location changes with denomination
E) All of the above

Question 33

A cashier whose bank is $500 closes the shift with $460 in cash and coin; the cashier:

A) Expects a due back
B) Is short $40
C) Does not expect a due back
D) Does not expect exchange
E) Both A and B; C and D have the same meaning

Question 34

In which of the following examples would a front desk clerk post a "paidout."

A) A guest who registered three days ago does not have enough credit left on his "cash only" folio for tonight's room charge. You ask him to pay an additional $61.25 towards his room.
B) A "cash only" guest who needs to use his in-room telephone is prepared to leave a $20 deposit
C) A "cash only" guest who left a $20 telephone deposit is now checking out. She only spent $8.00 on the telephone and is asking the excess $12.00 be returned to her now that she is checking out
D) A guest who is standing in front of you is prepared to leave an $80 advanced deposit (for his uncle arriving next week), but doesn't have change for a one hundred-dollar bill
E) All the above are examples of when to use a paidout

Question 35

At the end of your shift, let's assume your cash drawer has less currency and coin than you need to build tomorrow's starting bank. Say you should have a $450 bank but the total of currency and coin in front of you now only totals $310. You will probably:

A) Not have a due back
B) Have a due back
C) Drop short today by $140
D) Not have an exchange
E) Both B and C are correct. A and D are wrong because they mean the same thing

Question 36

Which of the following are examples of possible paid-outs made by front office guest service agents against a guest's folio:

A) Paid-out for a small credit remaining on folio from a cash deposit at check-in
B) Paid-out for a concessionaire room charge
C) Paid-out for a small cash loan to guest
D) Paid-out for an employee tip
E) All of the above

Question 37

Given the following data, how much is net receipts: Transient paid outs were $345; city account receipts were $444; transient account receipts were $3456; city account paid outs were $222. The starting bank was $500. On hand the cashier has checks and credits cards of $3300; currency of $300; coin of $84; and petty cash vouchers totaling $150. Net receipts for the shift are:

A) $3,333
B) $3,900
C) $4,467
D) $3,111
E) None of the above

Question 38

Given the following data, answer is the cashier over or short: Transient paid outs were $345; city account receipts were $444; transient account receipts were $3456; city account paid outs were $222. The starting bank was $500. On hand the cashier has checks and credits cards of $3300; currency of $300; coin of $84; and petty cash vouchers totaling $150. Is the drawer over or short:

A) Short $501
B) Short $223
C) Over by $66
D) Over $1
E) None of the above

Question 39

Given the following data, how much is turn-in or drop: Transient paid outs were $345; city account receipts were $444; transient account receipts were $3456; city account paid outs were $222. The starting bank was $500. On hand the cashier has checks and credits cards of $3300; currency of $300; coin of $84; and petty cash vouchers totaling $150. The turn-in or drop is:

A) $3,334
B) $3,300
C) $4,400
D) $3,450
E) None of the above

Question 40

Given the following data, how much is due back or exchange: Transient paid outs were $345; city account receipts were $444; transient account receipts were $3456; city account paid outs were $222. The starting bank was $500. On hand the cashier has checks and credits cards of $3300; currency of $300; coin of $84; and petty cash vouchers totaling $150. The due back or exchange is:

A) $350
B) $126
C) $384
D) $200
E) None of the above