HRTM 421 Exam 1 (With complete solution)

cost principle correct answers states that all transactions including the purchase or sale of an asset must be recorded at its cost rather than its market value assets, liabilities, and equity correct answers The balance sheet consists of three categories of accounts: liquidity correct answers assets are listed in the order of their __________, or how easily and quickly they can be converted into cash rooms revenue forecast correct answers a report that projects the number of rooms to be sold during the upcoming period and the average room rates associated with the projections CP3 system correct answers a tool that can help hotel managers and owners budget cash properly full disclosure principle correct answers requires that all potential events that could impact a company's financial position or operating results be clearly reflected on the company's financial statements or footnotes attached to the financial statements revenues, operating expenses, capital expenses, and profit or loss correct answers The income statement presents: how easily it can be converted into cash correct answers What order are assets listed on the balance sheet? daily payroll report correct answers details payroll costs by position and assists management in monitoring payroll and overtime monthly commitment budget, purchase order system, daily payroll system, and daily profit and loss statement correct answers What does the CP3 system consist of? lender correct answers Who reads financial statements to evaluate the company's recent performance versus its market segment and competitors, determine important trends, and project future earnings for the company? vertical analysis correct answers most often used to analyze and control variable expenses that appear on a hospitality company's income statement horizontal analysis correct answers tracks and analyzes both income statements and balance sheet line items over a specified period operating ratio correct answers assist management in determining how efficient the operation is off-balance sheet financing correct answers used by companies that do not want to show debt on their balance sheet associated with a real estate joint venture of which they own a percentage