Deck 6: Accounting

Question 1

Which financial tool is an estimate of a hotel's future revenue and expense?

A) P&L
B) Budget
C) Balance sheet
D) Income statement

Answer 1

B

Question 2

A hotel's AR balance increases when

A) products and services are sold to customers on credit.
B) invoices for products purchased by the hotel are paid.
C) legitimate invoices have been received by a hotel for payment.
D) customers who have been sold products and service on credit pay their bills.

Answer 2

A

Question 3

Which property would most likely use a decentralized accounting system?

A) A single hotel owned and operated by a single individual
B) A hotel owned and operated by a single individual who owns 20 hotels
C) A hotel owned and operated by a real estate company that owns and operates 20 hotels
D) A hotel owned and operated by a franchise company that owns and operates 20 of its own hotels

Answer 3

A

Question 4

In a large hotel property utilizing a decentralized accounting system the hotel's controller is likely to be a

A) CHA.
B) CPA.
C) CFBE.
D) USAL.

Question 5

A hotel's AP balance increases when

A) products and services are sold to customers on credit.
B) invoices for products purchased by the hotel are paid.
C) legitimate invoices have been received by a hotel for payment.
D) customers who have been sold products and service on credit pay their bills.

Question 6

In which type of accounting system would a hotel's data be combined with data from other hotels prior to its analysis?

A) Centralized
B) Decentralized
C) GAAP system
D) USALI system

Question 7

Who would most often decide if a hotel used a centralized or a decentralized accounting system?

A) Hotel GM
B) Hotel owner
C) Hotel controller
D) Hotel brand managers

Question 8

What is the primary purpose of a hotel controller?

A) Serve as the chairperson of the EOC.
B) Advise the GM on pricing decisions.
C) Manage the hotel's payroll and benefits costs.
D) Oversee bookkeeping and accounting functions.

Question 9

What is the formula used to calculate business profits?

A) Revenue (+) Expenses = Profits
B) Revenue (-) Expenses = Profits
C) Expenses (+) Revenue = Profits
D) Expenses (-) Revenue = Profits

Question 10

What is the purpose of GAAP?

A) Increase profits
B) Reduce expenses
C) Ensure uniformity
D) Provide flexibility

Question 11

Which financial tool would help a GM determine the best time to temporarily close a large number of guest rooms for renovation?

A) Audit
B) Budget
C) Revenue forecast
D) Statement of cash flows

Question 12

What is the purpose of bookkeeping?

A) Record financial transactions
B) Analyze financial transactions
C) Record monthly financial statements
D) Analyze monthly financial statements

Question 13

The bookkeeping and accounting tasks performed in a hotel's front office are considered

A) property accounting.
B) back-office accounting.
C) front-office accounting.
D) managerial accounting.

Question 14

What is the fundamental purpose of the Sarbanes-Oxley Act?

A) Reward innovation in accounting.
B) Standardize accounting procedures.
C) Standardize bookkeeping procedures.
D) Penalize fraudulent accounting practices.

Question 15

What is the formula accountants use to create a Balance sheet?

A) Assets = Liabilities - Owners' equity
B) Assets = Liabilities + Owners' equity
C) Assets = Liabilities ÷ Owners' equity
D) Assets = Liabilities x Owners' equity

Question 16

Who would be the best person to conduct an audit of a hotel's financial procedures?

A) The hotel's GM
B) The hotel's controller
C) An independent and qualified CHA
D) An independent and qualified CPA

Question 17

Which type of budget would be best used for scheduling needed capital expenditures?

A) Weekly
B) Monthly
C) Annual
D) Long range

Question 18

Which activity is a bookkeeping activity?

A) Calculate month-to-date ADR
B) Record the sale of a guest room
C) Assemble monthly P&L statements
D) Assess hotel cash flow from investing activities

Question 19

What is the name of the accounting procedures suggested for use in the hotel industry?

A) USR
B) USL
C) USAR
D) USALI

Question 20

What is the purpose of coding hotel expenses?

A) Reduce per guest operating costs
B) Assign costs to specific hotel areas
C) Increase the speed of invoice payment
D) Decrease the speed of invoice payment

Question 21

Which document reports the financial performance of a hotel for the specific time period addressed by the document?

A) Balance sheet
B) Income statement
C) Long range budget
D) Statement of cash flows

Question 22

Which document reports the financial condition of a hotel at a single point in time?

A) Balance sheet
B) Income statement
C) Long-range budget
D) Statement of cash flows

Question 23

Which management activity is NOT reported on a hotel's Statement of cash flows?

A) Investing
B) Financing
C) Operating
D) Forecasting

Question 24

On June 1st,a hotel's balance sheet shows assets of $6,400,000 and owners' equity of $2,000,000.What is the amount of the hotel's liabilities?

A) $2,400,000
B) $4,400,000
C) $6,400,000
D) $8,400,000

Question 25

An accounts aging report allows a GM to better manage a hotel's

A) AP.
B) AR.
C) ADR.
D) RevPAR.