HFT 2401 Test 2 Questions with All
Correct Answers
Which of the following financial statements would show how quickly a hospitality
operation could convert assets into cash? - Answer-Balance Sheet
Which of the following statements best summarizes the role of footnotes on a balance
sheet? - Answer-Footnotes should explain balance sheet figures and help users
interpret the balance sheet.
Cecil, the general manager of a hotel, picks up a balance sheet from the end of the
previous fiscal year, which ended December 31. He is gathering information to prove to
creditors that the hotel is able to pay its debts. If the current date is July 14: - Answer-
the balance sheet is too outdated to be helpful
All of the following items are shown on the balance sheet of a hospitality company
except: - Answer-employee training expenses
The class of assets on the balance sheet that includes land, buildings, and furnishings
that are in use is: - Answer-property and equipment
Which of the following would be included in the Investments category on the balance
sheet? - Answer-property not currently used in operations
Which of the following statements about consolidated financial statements is true? -
Answer-Generally, most of the voting stock of a subsidiary should be owned by the
holding company or by the same interests if the associated companies' financial
statements are to be combined
Which of the following financial reports most completely reflects the financial position of
a business at a given point in time? - Answer-Balance Sheet
Among current assets, the category Cash includes all of the following except: - Answer-
bank accounts with restricted use
All of the following are considered current liabilities except: - Answer-Deferred income
taxes
Petty cash is usually shown on the balance sheet as: - Answer-Cash
Correct Answers
Which of the following financial statements would show how quickly a hospitality
operation could convert assets into cash? - Answer-Balance Sheet
Which of the following statements best summarizes the role of footnotes on a balance
sheet? - Answer-Footnotes should explain balance sheet figures and help users
interpret the balance sheet.
Cecil, the general manager of a hotel, picks up a balance sheet from the end of the
previous fiscal year, which ended December 31. He is gathering information to prove to
creditors that the hotel is able to pay its debts. If the current date is July 14: - Answer-
the balance sheet is too outdated to be helpful
All of the following items are shown on the balance sheet of a hospitality company
except: - Answer-employee training expenses
The class of assets on the balance sheet that includes land, buildings, and furnishings
that are in use is: - Answer-property and equipment
Which of the following would be included in the Investments category on the balance
sheet? - Answer-property not currently used in operations
Which of the following statements about consolidated financial statements is true? -
Answer-Generally, most of the voting stock of a subsidiary should be owned by the
holding company or by the same interests if the associated companies' financial
statements are to be combined
Which of the following financial reports most completely reflects the financial position of
a business at a given point in time? - Answer-Balance Sheet
Among current assets, the category Cash includes all of the following except: - Answer-
bank accounts with restricted use
All of the following are considered current liabilities except: - Answer-Deferred income
taxes
Petty cash is usually shown on the balance sheet as: - Answer-Cash
