Question 1

Assets and liabilities are a part of which financial statement?

Accepted Answer

A)  balance sheet
B)  opening budget
C)  P&L statement
D)  income statement A

Question 2

A high inventory turnover ratio indicates large amounts of money are tied up in inventory.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following statements is true?

Accepted Answer

A)  Total variable costs do not vary with changes in sales volume.
B)  Total fixed cost per unit do not vary with changes in sales volume.
C)  Total fixed costs do not vary with changes in sales volume.
D)  Total costs do not vary with changes in sales volume. C

Question 4

The financial statement that shows financial position at a point in time is the ________.

Accepted Answer

A)  income statement
B)  balance sheet
C)  statement of change in financial position
D)  P&L statement

Question 5

Perception of value:

Accepted Answer

A)  is what the manager believes should be charged for menu items.
B)  is used by managers in determining the type of production equipment to purchase.
C)  is what customers believe a menu item is worth.
D)  is a rating used by customers in choosing a new restaurant in which to dine.

Question 6

The fundamental accounting equation is assets = liabilities + owner's equity.

Accepted Answer

A) True 
 B)False

Question 7

The formula to calculate food cost percentage is ________.

Accepted Answer

The answer of The formula to calculate food cost percentage...

Question 8

Typically the first step in the budget process is to compile the ________.

Accepted Answer

A)  pro forma income statement
B)  capital expenditure budget
C)  expenditure budget
D)  sales budget

Question 9

Jim had a beginning inventory of $5,500.During the month of April he purchased $4,000 of food and had an ending inventory of $3,800 at the end of the month.His sales for April were $8,750.What was his inventory turnover?

Accepted Answer

A)  1) 88 turns
B)  86:1
C)  45.7%
D)  1) 2 times

Question 10

Which of the following costs is typically the highest in a foodservice operation?

Accepted Answer

A)  labor
B)  supplies
C)  food
D)  overhead

Question 11

The time value of money concept suggests that having a $1.00 in the future is worth more than having a $1.00 today.

Accepted Answer

A) True 
 B)False

Question 12

A pro forma income statement:

Accepted Answer

A)  is used to complete a common-size income statement.
B)  forecasts revenue and expenses for a future period.
C)  summarizes sales and expenditures for the previous year.
D)  displays revenues and expenses for the past month.

Question 13

Accumulated depreciation is applied to which balance sheet category?

Accepted Answer

A)  long-term liabilities
B)  fixed assets
C)  current liabilities
D)  current assets

Question 14

The breakeven point is the point at which ________ and _______ are equal.

Accepted Answer

The answer of The breakeven point is the point at...

Question 15

Sam Jones owns a local restaurant.He buys steaks from the restaurant to serve his family at home for dinner.Sam should record this sale in the restaurant's books because of the:

Accepted Answer

A)  going-concern concept.
B)  cost principle.
C)  business entity principle.
D)  materiality principle.

Question 16

The formula for the break even point is 1 - (variable cost/sales).

Accepted Answer

A) True 
 B)False

Question 17

Ratios that are used to examine an establishment's ability to meet its long-term financial obligations are termed ________ ratios.

Accepted Answer

A)  solvency
B)  profitability
C)  operating
D)  liquidity

Question 18

Cashiers who take cash from customers should be the ones to count cash drawers and reconcile with cash register receipts.

Accepted Answer

A) True 
 B)False

Question 19

Cash,marketable securities,and accounts receivable are all categorized as ________ on a balance sheet.

Accepted Answer

A)  current liabilities
B)  current assets
C)  owner's equity
D)  fixed assets

Question 20

The denominator used when calculating a common size income statement is ________.

Accepted Answer

A)  total sales
B)  total liabilities
C)  total expenses
D)  total assets

Exam 13: Management of Financial Resources

Assets and liabilities are a part of which financial statement?

A high inventory turnover ratio indicates large amounts of money are tied up in inventory.

Which of the following statements is true?

The financial statement that shows financial position at a point in time is the ________.

Perception of value:

The fundamental accounting equation is assets = liabilities + owner's equity.

The formula to calculate food cost percentage is ________.

Typically the first step in the budget process is to compile the ________.

Jim had a beginning inventory of $5,500.During the month of April he purchased $4,000 of food and had an ending inventory of $3,800 at the end of the month.His sales for April were $8,750.What was his inventory turnover?

Which of the following costs is typically the highest in a foodservice operation?

The time value of money concept suggests that having a $1.00 in the future is worth more than having a $1.00 today.

A pro forma income statement:

Accumulated depreciation is applied to which balance sheet category?

The breakeven point is the point at which __ and _ are equal.

Sam Jones owns a local restaurant.He buys steaks from the restaurant to serve his family at home for dinner.Sam should record this sale in the restaurant's books because of the:

The formula for the break even point is 1 - (variable cost/sales).

Ratios that are used to examine an establishment's ability to meet its long-term financial obligations are termed ________ ratios.

Cashiers who take cash from customers should be the ones to count cash drawers and reconcile with cash register receipts.

Cash,marketable securities,and accounts receivable are all categorized as ________ on a balance sheet.

The denominator used when calculating a common size income statement is ________.