Question 1

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

Accepted Answer

A)   Investing
B)   Financing
C)   Operating
D)   ForecastingE) A) and B)
F) A) and C)

Question 2

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

Accepted Answer

A)   Centralized
B)   Decentralized
C)   GAAP system
D)   USALI systemE) A) and B)
F) A) and D)

Question 3

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

Accepted Answer

A)   AP.
B)   AR.
C)   ADR.
D)   RevPAR.E) None of the above
F) B) and D)

Question 4

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

Accepted Answer

A)   Balance sheet
B)   Income statement
C)   Long range budget
D)   Statement of cash flowsE) B) and D)
F) B) and C) B

Question 5

A hotel's AR balance increases when

Accepted Answer

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.E) B) and C)
F) A) and C) A

Question 6

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

Accepted Answer

A)   P&L
B)   Budget
C)   Balance sheet
D)   Income statementE) B) and C)
F) C) and D)

Question 7

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

Accepted Answer

A)   Hotel GM
B)   Hotel owner
C)   Hotel controller
D)   Hotel brand managersE) C) and D)
F) A) and B) B

Question 8

What is the purpose of GAAP?

Accepted Answer

A)   Increase profits
B)   Reduce expenses
C)   Ensure uniformity
D)   Provide flexibilityE) A) and C)
F) A) and B)

Question 9

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

Accepted Answer

A)   CHA.
B)   CPA.
C)   CFBE.
D)   USAL.E) A) and B)
F) A) and C)

Question 10

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

Accepted Answer

A)   Assets = Liabilities - Owners' equity
B)   Assets = Liabilities + Owners' equity
C)   Assets = Liabilities ÷ Owners' equity
D)   Assets = Liabilities x Owners' equityE) B) and D)
F) All of the above

Question 11

What is the purpose of bookkeeping?

Accepted Answer

A)   Record financial transactions
B)   Analyze financial transactions
C)   Record monthly financial statements
D)   Analyze monthly financial statementsE) A) and D)
F) All of the above

Question 12

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

Accepted Answer

A)   Reward innovation in accounting.
B)   Standardize accounting procedures.
C)   Standardize bookkeeping procedures.
D)   Penalize fraudulent accounting practices.E) A) and D)
F) All of the above

Question 13

Which activity is a bookkeeping activity?

Accepted Answer

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 activitiesE) B) and D)
F) C) and D)

Question 14

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?

Accepted Answer

A)   $2,400,000
B)   $4,400,000
C)   $6,400,000
D)   $8,400,000E) None of the above
F) B) and C)

Question 15

What is the purpose of coding hotel expenses?

Accepted Answer

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 paymentE) None of the above
F) B) and C)

Question 16

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

Accepted Answer

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

Question 17

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

Accepted Answer

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

Question 18

Which property would most likely use a decentralized accounting system?

Accepted Answer

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 hotelsE) A) and D)
F) C) and D)

Question 19

What is the formula used to calculate business profits?

Accepted Answer

A)   Revenue (+)  Expenses = Profits
B)   Revenue (-)  Expenses = Profits
C)   Expenses (+)  Revenue = Profits
D)   Expenses (-)  Revenue = ProfitsE) All of the above
F) A) and B)

Question 20

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

Accepted Answer

A)   Balance sheet
B)   Income statement
C)   Long-range budget
D)   Statement of cash flowsE) None of the above
F) A) and B)

Exam 6: Accounting

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

A hotel's AR balance increases when

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

What is the purpose of GAAP?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is the purpose of bookkeeping?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which activity is a bookkeeping activity?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

What is the purpose of coding hotel expenses?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which property would most likely use a decentralized accounting system?

Correct AnswerverifiedShow Answer

What is the formula used to calculate business profits?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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