HOSPITALITY REVENUE MANAGEMENT FINAL EXAM WITH 100% DETAILED VERIFIED ANSWERS., Exams of Business Administration

Download HOSPITALITY REVENUE MANAGEMENT FINAL EXAM WITH 100% DETAILED VERIFIED ANSWERS. and more Exams Business Administration in PDF only on Docsity! HOSPITALITY REVENUE MANAGEMENT FINAL EXAM WITH 100% DETAILED VERIFIED ANSWERS. The primary purpose of accounting is to report on an organization's? money and valuable property. When does accounting for a business begin? Before the business opens The best definition of an accountant is a person who is skilled in the recording and reporting of financial transactions. Which governmental entity establishes standards, and then awards qualified individuals the Certified Public Accountant (CPA) designation? State Which branch of accounting concerns itself with the independent verification of financial records? Auditing Items owned by a business are referred to as assets Which is the primary concern of financial accounting? Recording financial transactions Which is a question that could NOT be best answered strictly on the basis of accounting data? Which current bartender should we promote to Head Bartender? Assets = Liabilities + Owners? Equity, is referred to as the basic accounting equation. When properly used, accounting helps hospitality managers make better decisions. A restaurant owner records his purchases of food and beverage as an expense when they are purchased, and who does not record end of accounting period inventory values is violating the Matching Principle. Which is the accounting summary that presents the financial condition, or financial health, of a business? Balance Sheet In the hospitality industry, a point of sale (POS) system is used to record guest sales, payments and other information. Which portion of a hospitality business?s transaction and analysis process would most often by undertaken by the business?s owner or general manager? Financial analysis Which is the basic accounting equation that is applicable to every business? Assets = Liabilities + Owners' Equity Which is the foundation of accurate financial reporting and analysis? Bookkeeping In the hospitality industry, a property management system (PMS) is used to record customer transactions that take place at a hotel's front desk. Which would be the first action to occur in a hospitality business?s transaction recording and analysis process? Guest purchase What is the primary device that accountants use to record increases or decreases in the assets, liabilities or owners? equity portion of a business?s basic accounting equation? Account A restaurant owner who takes home steaks for grilling at a private party she is hosting for her friends, without properly reflecting this in the restaurant's accounting records, is violating the Distinct Business Entity Principle. A chef invests $40,000 of her own money, and $160,000 borrowed for a bank, to open her new restaurant. What percentage of this chef's new operation was equity funded? 6.7% Which is the formula a manager would use to calculate a return on investment (ROI)? Money earned on funds invested / Funds invested = ROI sources and uses of cash. A firm that is considered to be a going concern is one that generates enough cash to stay in business. Which is a form of cash equivalents in a business? Certificates of deposits A restaurant's balance sheet shows assets of $600,000, and liabilities of $200,000. What is this restaurant's debt to equity ratio? 0.50 times A restaurant achieved $150,000 in net income. The restaurant's balance sheet shows assets of $600,000, and liabilities of $200,000. What is this restaurant's return on equity ratio? 37.5% Which type of ratio assesses how readily current assets could be converted to cash? Liquidity ratio Which of the following groups generally do not like to see too much debt on a company's balance sheet? Lenders and creditors Which is the formula used to calculate a ratio? Part / Whole= Ratio Which of the following is calculated as: Current Assets - Current Liabilities? Working capital A hotel owner borrows $10,000 at 8% interest for one year. The owner re-invests the money and achieves a 25% gain in that year. What was the dollar amount of the surplus gain achieved by this hotel owner's leveraging activity? $1,700 Which is NOT a proper way to express the ratio of "10 out of each 100"? 10 Which is NOT a solvency-related ratio? Operating cash flows to current liabilities ratio A hotel has 85 rooms with king beds and 125 rooms with double beds. What percentage of the hotel's rooms have double beds? 59.5% GOPPAR is best defined as a hotel's revenue less management controllable costs per available room. In the hotel industry, package rate refers to a group of hotel products and services sold for one price. In the short run, when room supply is held constant a decrease in demand for rooms typically leads to a decreased selling price. What is the name of the rooms pricing structure in place when a hotel charges the highest rates in an area because it offers the best product or service levels? Prestige pricing A hotel had a GOP of $125,000 this accounting period and a GOP of $100,000 the previous accounting period. Total revenue was $300,000 the previous period and $350,000 this period. What was this hotel's flow through? 50% Which is the final step in the computation of the Hubbart room rate formula? Calculate the hotel?s required ADR A Caribbean hotel has 400 rooms. 150 of the rooms contain one double bed. 250 of the rooms contain two double beds. Last might the hotel had 910 guests staying in its rooms. What was the hotel's Bed Place % last night? 70% Flow through is calculated to help hotel managers identify the impact of increases in revenue on GOP. What was the original purpose of the front-office call-around? To identify other hotels? current rates before setting a hotel?s own rates A hotel has 400 rooms. Last night 5 rooms were out of order. Last night the hotel sold 300 rooms at an ADR of $215.00. What was the hotel's RevPAR last night? $163.29 Which is the best example of a mixed cost in the hotel industry? $4,800 B. $3,925 C. $3,275 D. $4,000 ???? A business's costs are synonymous with its expenses. At any specified level of revenue, the lower a business's costs, the greater are its profits. When an operation's total fixed and variable costs equal its revenue, the breakeven point has been reached A variable cost is one that increases as volume increases and decreases as volume decreases. Restaurant operators must know their costs before they can establish their menu prices. The number of guests served, hours worked or wages paid, sales revenue generated, and hours of operation are all examples of common methods used by managerial accountants to allocate joint costs. Which business cost will increase as a restaurant's volume increases? Napkin costs A restaurant achieved sales of $85,000 last month. The restaurant?s total expenses for last month were $55,550. What was the restaurant's profit last month? $29,450 A hotel has 400 available rooms. On Monday night the hotel?s revenue manager forecasts 80 stayovers, 175 arrivals, 10 no-shows, 25 walk-ins, and 10 early departures. What will be this revenue manager?s forecasted occupancy % for Monday night? 65% In the hospitality business, sales volume is defined as the number of units sold. Each member of a restaurant operator's wait staff can serve 30 guests per each hour worked. The operator anticipates serving 210 guests tomorrow between noon and 1:00 p.m. How many servers must be scheduled between noon and 1:00 p.m. tomorrow to serve the number of anticipated guests?