TEST BANK
Accounting Essentials for Hospitality Managers, 4th Edition
By Chris Guilding, Kate Mingjie Ji
SC
O
R
EG
U
ID
ES
, TABLE OF CONTENT
1. Introduction: Hospitality Decision Makers’ Use of Accounting
2. Analysing Transactions and Preparing Year-end Financial Statements
3. Double Entry Accounting
4. Adjusting and Closing Entries
5. Financial Statement Analysis
SC
6. Internal Control
7. Cost Management Issues
8. Cost-Volume-Profit Analysis
O
9. Budgeting and Responsibility Accounting
10. Flexible Budgeting and Variance Analysis
R
11. Performance Measurement
12. Cost Information and Pricing
EG
13. Working Capital Management
14. Investment Decision Making
15. Other Managerial Finance Issues
U
16. Revenue Management
ID
ES
, Test Bank to accompany
Accounting Essentials for Hospitality Managers
Chapter 1: Introduction: Hospitality Decision Makers’ Use of Accounting
1. Which of the following is not an example of a sector that can be classified within the
hospitality industry?
A. Cruise liners
SC
B. Country and sports clubs
C. Pubs and bars
D. Fast-food outlets
E. All of the above can be classified within the hospitality industry
2. Which of the following statements is not true?
O
A. Designing a large hotel’s organisational structure and accounting system is
complicated by the need to co-ordinate a range of disparate functions that typically
R
include the provision of accommodation, restaurant and bar facilities.
B. Hotels can be distinguished from most other service sectors as the location of the
service provision is also the place where the customer purchases and consumes the
services offered.
EG
C. High functional interdependency facilitates departmental accountability.
D. The nature of management decision making in connection with selling rooms in a hotel
can be likened to the sale of seats in the airline or entertainment industries.
E. Hotels’ high sales volatility makes accurate budgeting more challenging.
3. Which of the following is not a key characteristic of the hotel industry?
U
A. High sales volatility.
B. High product perishability.
ID
C. High proportion of fixed costs.
D. High proportion of labour intensive activities.
E. All of the above are key characteristics of the hotel industry
ES
4. Which of the following is not a generally acknowledged sales volatility challenge that is
evident in the hotel industry?
A. Economic cycle volatility
B. Seasonal sales volatility
C. Staff turnover sales volatility
D. Weekly sales volatility
E. Intra-day sales volatility
, 5. Which of the following is not a true statement?
A. Relative to purchases in most other commercial contexts, there tends to be a short time
span between order placement, production and sale of many items in a restaurant
kitchen.
B. A high proportion of a hotel’s costs do not vary in line with sales levels.
C. Relative to most other industries, activities conducted in the hotel industry are not
labour intensive.
D. Achieving standardised approaches to reporting is more of a concern in financial
accounting than in management accounting.
E. Management accounting is less standardised than financial accounting.
SC
6. Which of the following statements is untrue?
A. A lack of confidence in financial accounting systems would likely make it harder to
raise debt and equity funding.
B. Management accounting systems are designed to help managers in their decision
O
making and control of businesses.
C. Greater use of the Uniform System of Accounts is signifying increased
standardisation of hotel account classification schemes and also financial
R
performance reports produced by hotels.
D. The accounting system is one of several information systems that monitor the
performance of all departments within hotels.
E. For the sake of a healthy economy, it is important that a reliable financial accounting
EG
system is established.
7. Which of the following is not a true statement?
A. Financial accounting concerns the preparation of financial reports for external users on
a monthly basis.
U
B. Management accounting concerns the provision of financial reports to managers.
C. Management accounting reports can be produced using non- standardised formats
across companies.
ID
D. For most organisations, the accounting system can be seen as the most extensive and
all encompassing information system.
E. A reducing level of confidence in financial accounting systems would translate into a
greater reluctance for equity providers to invest in companies.
ES
8. In the context of hotel management, which of the following does not represent an example of
high perishability with respect to a sales opportunity?
A. A specific room night.
B. A delivery of strawberries.
C. A delivery of bottled beer.
D. A large conference room for a specific day.
E. None of the above, they are all examples of products or services with high perishability.
Accounting Essentials for Hospitality Managers, 4th Edition
By Chris Guilding, Kate Mingjie Ji
SC
O
R
EG
U
ID
ES
, TABLE OF CONTENT
1. Introduction: Hospitality Decision Makers’ Use of Accounting
2. Analysing Transactions and Preparing Year-end Financial Statements
3. Double Entry Accounting
4. Adjusting and Closing Entries
5. Financial Statement Analysis
SC
6. Internal Control
7. Cost Management Issues
8. Cost-Volume-Profit Analysis
O
9. Budgeting and Responsibility Accounting
10. Flexible Budgeting and Variance Analysis
R
11. Performance Measurement
12. Cost Information and Pricing
EG
13. Working Capital Management
14. Investment Decision Making
15. Other Managerial Finance Issues
U
16. Revenue Management
ID
ES
, Test Bank to accompany
Accounting Essentials for Hospitality Managers
Chapter 1: Introduction: Hospitality Decision Makers’ Use of Accounting
1. Which of the following is not an example of a sector that can be classified within the
hospitality industry?
A. Cruise liners
SC
B. Country and sports clubs
C. Pubs and bars
D. Fast-food outlets
E. All of the above can be classified within the hospitality industry
2. Which of the following statements is not true?
O
A. Designing a large hotel’s organisational structure and accounting system is
complicated by the need to co-ordinate a range of disparate functions that typically
R
include the provision of accommodation, restaurant and bar facilities.
B. Hotels can be distinguished from most other service sectors as the location of the
service provision is also the place where the customer purchases and consumes the
services offered.
EG
C. High functional interdependency facilitates departmental accountability.
D. The nature of management decision making in connection with selling rooms in a hotel
can be likened to the sale of seats in the airline or entertainment industries.
E. Hotels’ high sales volatility makes accurate budgeting more challenging.
3. Which of the following is not a key characteristic of the hotel industry?
U
A. High sales volatility.
B. High product perishability.
ID
C. High proportion of fixed costs.
D. High proportion of labour intensive activities.
E. All of the above are key characteristics of the hotel industry
ES
4. Which of the following is not a generally acknowledged sales volatility challenge that is
evident in the hotel industry?
A. Economic cycle volatility
B. Seasonal sales volatility
C. Staff turnover sales volatility
D. Weekly sales volatility
E. Intra-day sales volatility
, 5. Which of the following is not a true statement?
A. Relative to purchases in most other commercial contexts, there tends to be a short time
span between order placement, production and sale of many items in a restaurant
kitchen.
B. A high proportion of a hotel’s costs do not vary in line with sales levels.
C. Relative to most other industries, activities conducted in the hotel industry are not
labour intensive.
D. Achieving standardised approaches to reporting is more of a concern in financial
accounting than in management accounting.
E. Management accounting is less standardised than financial accounting.
SC
6. Which of the following statements is untrue?
A. A lack of confidence in financial accounting systems would likely make it harder to
raise debt and equity funding.
B. Management accounting systems are designed to help managers in their decision
O
making and control of businesses.
C. Greater use of the Uniform System of Accounts is signifying increased
standardisation of hotel account classification schemes and also financial
R
performance reports produced by hotels.
D. The accounting system is one of several information systems that monitor the
performance of all departments within hotels.
E. For the sake of a healthy economy, it is important that a reliable financial accounting
EG
system is established.
7. Which of the following is not a true statement?
A. Financial accounting concerns the preparation of financial reports for external users on
a monthly basis.
U
B. Management accounting concerns the provision of financial reports to managers.
C. Management accounting reports can be produced using non- standardised formats
across companies.
ID
D. For most organisations, the accounting system can be seen as the most extensive and
all encompassing information system.
E. A reducing level of confidence in financial accounting systems would translate into a
greater reluctance for equity providers to invest in companies.
ES
8. In the context of hotel management, which of the following does not represent an example of
high perishability with respect to a sales opportunity?
A. A specific room night.
B. A delivery of strawberries.
C. A delivery of bottled beer.
D. A large conference room for a specific day.
E. None of the above, they are all examples of products or services with high perishability.
