AHLEI HOSPITALITY MANAGER TEST
BANK QUESTIONS WITH VERIFIED
ANSWERS FULL REVIEW
●● The fundamental purpose of accounting is to:
Answer: provide accurate, useful, and timely financial information.
●● The fundamental accounting equation is:
Answer: assets = liabilities + equity
●● In the double-entry system of accounting:
Answer: equal dollar amounts of debits and credits must be entered for
each business transaction.
●● The Hospitality Financial & Technology Professionals serves its
membership by:
Answer: providing training sessions on hospitality accounting and
technology and conducting professional development seminars for clubs,
gaming operations, and other areas of special interest.
●● In a corporation business form:
Answer: profits are retained in the corporation, with shareholders
receiving dividends at the discretion of the board of directors.
,●● How is a business's income tax computed?
Answer: taxable income multiplied by an applicable tax rate
●● Which of the following best describes par value of a corporation's
stock?
Answer: It is an established value for a company's stock, generally very
low, below which the stock cannot be originally issued.
●● Which of the following statements regarding the partnership form of
business is true?
Answer: It may have any number of limited partners.
●● Forming a corporation is a legal procedure performed by:
Answer: filing articles of incorporation with the secretary of
corporation's office in the corporation's home state.
●● The financial document that provides information about the results of
a company's operations for a period of time is the:
Answer: statement of income.
●● The purpose of a balance sheet is to:
Answer: show the financial position of a company on a given date.
, ●● Which of the following are the basic financial statements prepared
by hospitality businesses?
Answer: statement of income, equity statement, balance sheet, statement
of cash flows.
●● Managers, stockholders, investors, creditors, and other interested
readers of a hospitality business's financial statements use the statements
to get information about:
Answer: what the hospitality operation has accomplished financially,
where cash came from and where it was spent during the most recent
accounting period, and the operation's ability to pay its bills.
●● The statement of retained earnings for a corporation shows:
Answer: the amount of earnings retained by the corporation.
●● An unsecured bond backed only by the good faith of the issuer is
called a:
Answer: debenture bond.
●● The account Prepaid Insurance is classified on the balance sheet as a:
Answer: current asset.
BANK QUESTIONS WITH VERIFIED
ANSWERS FULL REVIEW
●● The fundamental purpose of accounting is to:
Answer: provide accurate, useful, and timely financial information.
●● The fundamental accounting equation is:
Answer: assets = liabilities + equity
●● In the double-entry system of accounting:
Answer: equal dollar amounts of debits and credits must be entered for
each business transaction.
●● The Hospitality Financial & Technology Professionals serves its
membership by:
Answer: providing training sessions on hospitality accounting and
technology and conducting professional development seminars for clubs,
gaming operations, and other areas of special interest.
●● In a corporation business form:
Answer: profits are retained in the corporation, with shareholders
receiving dividends at the discretion of the board of directors.
,●● How is a business's income tax computed?
Answer: taxable income multiplied by an applicable tax rate
●● Which of the following best describes par value of a corporation's
stock?
Answer: It is an established value for a company's stock, generally very
low, below which the stock cannot be originally issued.
●● Which of the following statements regarding the partnership form of
business is true?
Answer: It may have any number of limited partners.
●● Forming a corporation is a legal procedure performed by:
Answer: filing articles of incorporation with the secretary of
corporation's office in the corporation's home state.
●● The financial document that provides information about the results of
a company's operations for a period of time is the:
Answer: statement of income.
●● The purpose of a balance sheet is to:
Answer: show the financial position of a company on a given date.
, ●● Which of the following are the basic financial statements prepared
by hospitality businesses?
Answer: statement of income, equity statement, balance sheet, statement
of cash flows.
●● Managers, stockholders, investors, creditors, and other interested
readers of a hospitality business's financial statements use the statements
to get information about:
Answer: what the hospitality operation has accomplished financially,
where cash came from and where it was spent during the most recent
accounting period, and the operation's ability to pay its bills.
●● The statement of retained earnings for a corporation shows:
Answer: the amount of earnings retained by the corporation.
●● An unsecured bond backed only by the good faith of the issuer is
called a:
Answer: debenture bond.
●● The account Prepaid Insurance is classified on the balance sheet as a:
Answer: current asset.
