Deck 12: Revenue and Cash Handling Control

Question 1

A gift certificate that has been sold but has not been redeemed is treated as an asset in the general ledger account.

Answer 1

False

Question 2

When a manager audits a server at the end of one shift, then passes the bank to an incoming server, it is referred to as a:

A) floating house bank
B) house bank
C) sequential house bank
D) house bank transfer

Answer 2

A

Question 3

If 400 covers are served at dinner and the combined food and beverage revenue is $6,000, what is the combined average check?

A) $35.00
B) $15.00
C) $12.00
D) $16.50

Answer 3

B

Question 4

Credit card charges that are not collectible should be treated the same as a cash variance with disciplinary action.

Question 5

If a restaurant is open twenty-four days per month and produced 6,000 covers, what was the average number of covers per day?

A) 300
B) 400
C) 250
D) 200

Question 6

Check-control procedures begin when checks are issued to servers.

Question 7

Due-back slips are issued when:

A) an employee works a split shift and is required to return on the same day
B) the amount of cash and/or checks in a drop exceeds the amount due
C) an employee is disciplined for cash shortages and receives an unpaid leave until the due-back date
D) employees have cash overages

Question 8

What is the occupancy percentage of a 7,500 room-nights hotel if only 5,800 rooms are occupied?

A) 75.15 percent
B) 77.33 percent
C) 70.33 percent
D) 72.50 percent

Question 9

To determine the "actual occupied rooms percentage," simply divide the number of occupied rooms by the number of available rooms.

Question 10

If a hotel has 250 rooms, how many room nights are available in a thirty-day month if there is 1 room per day out-of-order?

A) 7,499
B) 7,500
C) 7530
D) 7,470

Question 11

No amount of precautions are taken to secure house funds. Locking the cash drawer, restricting access to the bank, and counting change back to the guest will all help in maintaining the security of the bank.

Question 12

Unless dishonest intent can be demonstrated, it is illegal to take disciplinary against an employee who's drop is short.

Question 13

If a restaurant has 150 seats and serves 500 covers at lunch, what is the turnover rate per seat?

A) 3.9
B) 2.5
C) 4.2
D) 3.33

Question 14

When calculating "average food check," promotional covers should not be included in the cover count.

Question 15

A gift certificate sold but not yet redeemed is treated on the general ledger as a(n):

A) asset
B) liability
C) equity
D) income

Question 16

When a server voids a check, the check should immediately be torn up and disposed of so that it cannot be reused.

Question 17

A witness to a drop should verify:

A) the actual amount of money in the drop envelope and that the drop has been made
B) that the amount of money written on the envelope equals the amount on the drop record and that the drop has been deposited in the safe
C) that all checks are properly accounted for, that the drop equals the amount recorded on the checks and the drop record, and that the drop has been deposited in the safe
D) only that the drop has been deposited in the safe

Question 18

Which of the following is not an innovation incorporated into new currency to deter counterfeiting?

A) watermark visible from both sides
B) security thread
C) color-shifting ink
D) signature of person whose portrait appears

Question 19

It is acceptable to undercharge fellow employees as long as they do the same for you.

Question 20

"Drops" are deposits that are placed in the company's safe.

Question 21

How should a check control log be established?

Question 22

Why and how should banquet reception cover reports be conducted?

Question 23

What is the proper procedure for a cash drop?

Question 24

What are the responsibilities of cash handlers?

Question 25

How should check controls at each outlet be monitored?

Question 26

How are guest checks controlled in the storeroom?

Question 27

Give three examples of how a counterfeit US $100 bill can be identified.

Question 28

Give two examples of ways an employee can steal from an operation.

Question 29

What is meant by "under-ring of charges"?

Question 30

How are gift certificates handled?