Travel Agent Proficiency Test Final Review Questions with Correct Answers Latest Update
2026/2027
Fixed Expenses - Answers costs that remain unchanged during a specific period despite
changes in the volume of business.
Variable Expenses - Answers are costs that increase and decrease directly and proportionately
with changes in business volume.
Semi-Variable or Mixed Expenses - Answers are costs that change in response to a change in
business volume, but they change by less than a proportional amount.
Income Statement - Answers summarizes revenues earned and expenses incurred for a
particular period
Balance Sheet - Answers it shows the financial position of a business at a particular time and
may compare it to the business's position at the same time of a previous year. This includes
assets, liability and equity
Suppliers receive payment in four ways - Answers Directly from client
CC company
In the form of checks from agencies
Through ARC (Airline Reporting Corporation)
Agents Receive Payments in 3 Ways - Answers Through ARC
By deducting commission prior to sending to supplier
By check from supplier
ARC (AIRLINE REPORTING CORP) - Answers an organization owned by major airlines that
regulates the sale of airline tickets by appointing those who may sell them.
Accountable Documents - Answers issues standardized numbered forms that serve as tickets,
and it operates a centralized system for processing sales.
Area Bank Settlement Plan - Answers the system set up by ARC through which participating
suppliers receive payments for sales by travel agencies
ARC Report - Answers Each travel agency pays the ARC suppliers weekly by electronically filing
a mandatory report of sales
base fare - Answers the fare shorn of all taxes
Escrow Account - Answers An account held by a third party or a bank that holds on to funds
,until all requirements are fulfilled for them to be released
overrides - Answers bonus commissions to agencies that meet various sales goals or move
clients to the supplier's products
Income for Travel Agencies - Answers Commission on sales of transportation, accommodation,
cruises, tours and other services
Override commissions
Fees and service charges
Markups on net charges
Cost Benefit Analysis - Answers A tool entrepreneurs use to hold down expenses and ensure
profits (ex. Buying flowers or gifts for a client)
Consortium - Answers which is an association of agencies that retain their independent
identities but pool their resources for certain purposes
Miscellaneous Charges Order (MCO) - Answers It records deposits and full prepayments for
transportation, tour packages, supplemental charges, accommodations, or additional
collections. A clear description of the type of service for which it is issued must be indicated on
the MCO.
Voucher - Answers Any document used to confirm arrangements, identify clients, or indicate
payments made
Invoice - Answers Indicates the amount due from a client and constitutes an implied contract
between the agency and the client for services rendered in exchange for payment
Receipt - Answers Invoices that indicate an amount paid and the method of payment.
ARC's Industry Handbook - Answers lists the forms of payment accepted by specific airlines,
and CRSs indicate if a particular credit card payment is not acceptable to the airline being used.
Travel Agency Service Fee (TASF) program - Answers allows agencies to accept credit card
purchases for non-ARC items, such as service charges, and to process them through the Area
Bank Settlement Plan for a 3.5 percent fee
Protocol with checks and travelers checks - Answers Do not accept checks from anyone unless
they are trustworthy, or if you can hold on to the tickets until the check clears
Do not accept checks from someone else who is not the person booking
Do not accept checks that are over the amount that they are charged
Some agencies use a check verification service to ensure that the funds will clear, although it is
, not necessary
Write clients name, proof of identity, address, phone number, Drivers License on the back of the
check
Never accept pre signed travelers checks
Only accept travelers checks from reputable companies
Geography - Answers The study of relationships between people and their environment
Physical Geography - Answers Focuses on people and their patterns of settlement and activity
Travel Geography - Answers Application of knowledge to travel, tourism and hospitality agency
Longitude - Answers Horizontal Lines
Latitude - Answers Vertical Lines (Lateral!)
prime meridian - Answers through Greenwich, England and the 180 degree meridian through the
pacific ocean
Globe - Answers Scale model of the earth
Cartography - Answers Map Making
Geographic Information System (GIS) - Answers Can retrieve, record, analyze and manipulate
information gathered by satellites
Interactive Mapping - Answers When a user asks for information and the computer guides the
user to the answer
Projection - Answers Transfer of information from a round surface to a flat area
Great Circle Route - Answers A phrase used by airlines to determine the shortest distance
between to destinations
Compass Rose - Answers Symbol in the maps corner indicating the map's orientation
Key or Legend - Answers Explains symbols on the map
Scale - Answers Indicates maps distances and the actual distances on earth
24 Hour Clock - Answers Eliminates am and pm distinction and has one number for each hour
of the day
International Date Line - Answers 180 degrees from GMT
Local Time - Answers Time at any particular place
2026/2027
Fixed Expenses - Answers costs that remain unchanged during a specific period despite
changes in the volume of business.
Variable Expenses - Answers are costs that increase and decrease directly and proportionately
with changes in business volume.
Semi-Variable or Mixed Expenses - Answers are costs that change in response to a change in
business volume, but they change by less than a proportional amount.
Income Statement - Answers summarizes revenues earned and expenses incurred for a
particular period
Balance Sheet - Answers it shows the financial position of a business at a particular time and
may compare it to the business's position at the same time of a previous year. This includes
assets, liability and equity
Suppliers receive payment in four ways - Answers Directly from client
CC company
In the form of checks from agencies
Through ARC (Airline Reporting Corporation)
Agents Receive Payments in 3 Ways - Answers Through ARC
By deducting commission prior to sending to supplier
By check from supplier
ARC (AIRLINE REPORTING CORP) - Answers an organization owned by major airlines that
regulates the sale of airline tickets by appointing those who may sell them.
Accountable Documents - Answers issues standardized numbered forms that serve as tickets,
and it operates a centralized system for processing sales.
Area Bank Settlement Plan - Answers the system set up by ARC through which participating
suppliers receive payments for sales by travel agencies
ARC Report - Answers Each travel agency pays the ARC suppliers weekly by electronically filing
a mandatory report of sales
base fare - Answers the fare shorn of all taxes
Escrow Account - Answers An account held by a third party or a bank that holds on to funds
,until all requirements are fulfilled for them to be released
overrides - Answers bonus commissions to agencies that meet various sales goals or move
clients to the supplier's products
Income for Travel Agencies - Answers Commission on sales of transportation, accommodation,
cruises, tours and other services
Override commissions
Fees and service charges
Markups on net charges
Cost Benefit Analysis - Answers A tool entrepreneurs use to hold down expenses and ensure
profits (ex. Buying flowers or gifts for a client)
Consortium - Answers which is an association of agencies that retain their independent
identities but pool their resources for certain purposes
Miscellaneous Charges Order (MCO) - Answers It records deposits and full prepayments for
transportation, tour packages, supplemental charges, accommodations, or additional
collections. A clear description of the type of service for which it is issued must be indicated on
the MCO.
Voucher - Answers Any document used to confirm arrangements, identify clients, or indicate
payments made
Invoice - Answers Indicates the amount due from a client and constitutes an implied contract
between the agency and the client for services rendered in exchange for payment
Receipt - Answers Invoices that indicate an amount paid and the method of payment.
ARC's Industry Handbook - Answers lists the forms of payment accepted by specific airlines,
and CRSs indicate if a particular credit card payment is not acceptable to the airline being used.
Travel Agency Service Fee (TASF) program - Answers allows agencies to accept credit card
purchases for non-ARC items, such as service charges, and to process them through the Area
Bank Settlement Plan for a 3.5 percent fee
Protocol with checks and travelers checks - Answers Do not accept checks from anyone unless
they are trustworthy, or if you can hold on to the tickets until the check clears
Do not accept checks from someone else who is not the person booking
Do not accept checks that are over the amount that they are charged
Some agencies use a check verification service to ensure that the funds will clear, although it is
, not necessary
Write clients name, proof of identity, address, phone number, Drivers License on the back of the
check
Never accept pre signed travelers checks
Only accept travelers checks from reputable companies
Geography - Answers The study of relationships between people and their environment
Physical Geography - Answers Focuses on people and their patterns of settlement and activity
Travel Geography - Answers Application of knowledge to travel, tourism and hospitality agency
Longitude - Answers Horizontal Lines
Latitude - Answers Vertical Lines (Lateral!)
prime meridian - Answers through Greenwich, England and the 180 degree meridian through the
pacific ocean
Globe - Answers Scale model of the earth
Cartography - Answers Map Making
Geographic Information System (GIS) - Answers Can retrieve, record, analyze and manipulate
information gathered by satellites
Interactive Mapping - Answers When a user asks for information and the computer guides the
user to the answer
Projection - Answers Transfer of information from a round surface to a flat area
Great Circle Route - Answers A phrase used by airlines to determine the shortest distance
between to destinations
Compass Rose - Answers Symbol in the maps corner indicating the map's orientation
Key or Legend - Answers Explains symbols on the map
Scale - Answers Indicates maps distances and the actual distances on earth
24 Hour Clock - Answers Eliminates am and pm distinction and has one number for each hour
of the day
International Date Line - Answers 180 degrees from GMT
Local Time - Answers Time at any particular place
