TEST BANK COMPLETE_
ACCOUNTING ESSENTIALS FOR HOSPITALITY MANAGERS 4TH
EDITION, (2022)
BY CHRIS GUILDING (AUTHOR), KATE MINGJIE JI (AUTHOR)
ALL CHAPTERS 1-16| LATEST EDITION WITH VERIFIED ANSWERS| RATED A+
,CHAPTER 1: INTRODUCTION: HOSPITALITY DECISION MAKERS’ USE OF ACCOUNTING _______________________ 3
CHAPTER 2: ANALYSING TRANSACTIONS AND PREPARING YEAR END FINANCIAL STATEMENTS ______________ 12
CHAPTER 3: DOUBLE ENTRY ACCOUNTING _________________________________________________________ 19
CHAPTER 4: ADJUSTING AND CLOSING ENTRIES_____________________________________________________ 31
CHAPTER 5: FINANCIAL STATEMENT ANALYSIS _____________________________________________________ 41
CHAPTER 6: INTERNAL CONTROL_________________________________________________________________ 58
CHAPTER 7: COST MANAGEMENT ISSUES __________________________________________________________ 66
CHAPTER 8: COST-VOLUME-PROFIT ANALYSIS ______________________________________________________ 82
CHAPTER 9: BUDGETING AND RESPONSIBILITY ACCOUNTING __________________________________________ 91
CHAPTER 10: FLEXIBLE BUDGETING AND VARIANCE ANALYSIS ________________________________________ 104
CHAPTER 11: PERFORMANCE MEASUREMENT _____________________________________________________ 112
CHAPTER 12: COST INFORMATION AND PRICING ___________________________________________________ 121
CHAPTER 13: WORKING CAPITAL MANAGEMENT __________________________________________________ 127
CHAPTER 14: INVESTMENT DECISION MAKING ____________________________________________________ 136
CHAPTER 15: OTHER MANAGERIAL FINANCE ISSUES ________________________________________________ 147
CHAPTER 16: REVENUE MANAGEMENT __________________________________________________________ 150
,CHAPTER 1: INTRODUCTION: HOSPITALITY DECISION MAKERS’ USE OF
ACCOUNTING
CHRIS GUILDING: ACCOUNTING ESSENTIALS FOR HOSPITALITY MANAGERS 4TH EDITION, (2022) TEST
BANK
1. WHICH OF THE FOLLOWING IS NOT AN EXAMPLE OF A SECTOR THAT
CAN BE CLASSIFIED WITHIN THE HOSPITALITY INDUSTRY?
A. CRUISE LINERS
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
ALL THE OPTIONS LISTED ARE PART OF THE BROADER HOSPITALITY INDUSTRY, WHICH
INCLUDES ANY BUSINESS THAT PROVIDES FOOD, DRINK, OR ACCOMMODATION
SERVICES TO CUSTOMERS. THIS INCLUDES CRUISE LINERS, SPORTS CLUBS, PUBS,
BARS, AND FAST-FOOD OUTLETS.
2. WHICH OF THE FOLLOWING STATEMENTS IS NOT TRUE?
A. DESIGNING A LARGE HOTEL’S ORGANIZATIONAL STRUCTURE AND
ACCOUNTING SYSTEM IS COMPLICATED BY THE NEED TO CO-
ORDINATE A RANGE OF DISPARATE FUNCTIONS THAT TYPICALLY
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.
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.
HIGH FUNCTIONAL INTERDEPENDENCY IN HOTELS OFTEN MAKES IT MORE CHALLENGING
TO HOLD DEPARTMENTS ACCOUNTABLE. WITH VARIOUS DEPARTMENTS (E.G.,
HOUSEKEEPING, FOOD SERVICES, FRONT DESK) RELYING ON EACH OTHER,
MISALIGNMENTS CAN AFFECT ACCOUNTABILITY.
3. WHICH OF THE FOLLOWING IS NOT A KEY CHARACTERISTIC OF THE HOTEL
INDUSTRY?
A. HIGH SALES VOLATILITY.
B. HIGH PRODUCT PERISHABILITY.
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
ALL LISTED CHARACTERISTICS APPLY TO THE HOTEL INDUSTRY. HOTELS EXPERIENCE
HIGH SALES VOLATILITY DUE TO SEASONALITY AND OTHER FACTORS, HIGH
, PERISHABILITY OF SERVICES (E.G., UNBOOKED ROOMS), HIGH FIXED COSTS DUE TO
INFRASTRUCTURE, AND LABOUR-INTENSIVE OPERATIONS.
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
STAFF TURNOVER IS NOT TYPICALLY CONSIDERED A DIRECT CAUSE OF SALES
VOLATILITY. INSTEAD, ECONOMIC CYCLES, SEASONALITY, AND OTHER TIME-
BASED FLUCTUATIONS (E.G., WEEKLY OR INTRA-DAY SALES) ARE
RECOGNIZED CHALLENGES FOR HOTELS.
ACCOUNTING ESSENTIALS FOR HOSPITALITY MANAGERS 4TH
EDITION, (2022)
BY CHRIS GUILDING (AUTHOR), KATE MINGJIE JI (AUTHOR)
ALL CHAPTERS 1-16| LATEST EDITION WITH VERIFIED ANSWERS| RATED A+
,CHAPTER 1: INTRODUCTION: HOSPITALITY DECISION MAKERS’ USE OF ACCOUNTING _______________________ 3
CHAPTER 2: ANALYSING TRANSACTIONS AND PREPARING YEAR END FINANCIAL STATEMENTS ______________ 12
CHAPTER 3: DOUBLE ENTRY ACCOUNTING _________________________________________________________ 19
CHAPTER 4: ADJUSTING AND CLOSING ENTRIES_____________________________________________________ 31
CHAPTER 5: FINANCIAL STATEMENT ANALYSIS _____________________________________________________ 41
CHAPTER 6: INTERNAL CONTROL_________________________________________________________________ 58
CHAPTER 7: COST MANAGEMENT ISSUES __________________________________________________________ 66
CHAPTER 8: COST-VOLUME-PROFIT ANALYSIS ______________________________________________________ 82
CHAPTER 9: BUDGETING AND RESPONSIBILITY ACCOUNTING __________________________________________ 91
CHAPTER 10: FLEXIBLE BUDGETING AND VARIANCE ANALYSIS ________________________________________ 104
CHAPTER 11: PERFORMANCE MEASUREMENT _____________________________________________________ 112
CHAPTER 12: COST INFORMATION AND PRICING ___________________________________________________ 121
CHAPTER 13: WORKING CAPITAL MANAGEMENT __________________________________________________ 127
CHAPTER 14: INVESTMENT DECISION MAKING ____________________________________________________ 136
CHAPTER 15: OTHER MANAGERIAL FINANCE ISSUES ________________________________________________ 147
CHAPTER 16: REVENUE MANAGEMENT __________________________________________________________ 150
,CHAPTER 1: INTRODUCTION: HOSPITALITY DECISION MAKERS’ USE OF
ACCOUNTING
CHRIS GUILDING: ACCOUNTING ESSENTIALS FOR HOSPITALITY MANAGERS 4TH EDITION, (2022) TEST
BANK
1. WHICH OF THE FOLLOWING IS NOT AN EXAMPLE OF A SECTOR THAT
CAN BE CLASSIFIED WITHIN THE HOSPITALITY INDUSTRY?
A. CRUISE LINERS
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
ALL THE OPTIONS LISTED ARE PART OF THE BROADER HOSPITALITY INDUSTRY, WHICH
INCLUDES ANY BUSINESS THAT PROVIDES FOOD, DRINK, OR ACCOMMODATION
SERVICES TO CUSTOMERS. THIS INCLUDES CRUISE LINERS, SPORTS CLUBS, PUBS,
BARS, AND FAST-FOOD OUTLETS.
2. WHICH OF THE FOLLOWING STATEMENTS IS NOT TRUE?
A. DESIGNING A LARGE HOTEL’S ORGANIZATIONAL STRUCTURE AND
ACCOUNTING SYSTEM IS COMPLICATED BY THE NEED TO CO-
ORDINATE A RANGE OF DISPARATE FUNCTIONS THAT TYPICALLY
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.
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.
HIGH FUNCTIONAL INTERDEPENDENCY IN HOTELS OFTEN MAKES IT MORE CHALLENGING
TO HOLD DEPARTMENTS ACCOUNTABLE. WITH VARIOUS DEPARTMENTS (E.G.,
HOUSEKEEPING, FOOD SERVICES, FRONT DESK) RELYING ON EACH OTHER,
MISALIGNMENTS CAN AFFECT ACCOUNTABILITY.
3. WHICH OF THE FOLLOWING IS NOT A KEY CHARACTERISTIC OF THE HOTEL
INDUSTRY?
A. HIGH SALES VOLATILITY.
B. HIGH PRODUCT PERISHABILITY.
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
ALL LISTED CHARACTERISTICS APPLY TO THE HOTEL INDUSTRY. HOTELS EXPERIENCE
HIGH SALES VOLATILITY DUE TO SEASONALITY AND OTHER FACTORS, HIGH
, PERISHABILITY OF SERVICES (E.G., UNBOOKED ROOMS), HIGH FIXED COSTS DUE TO
INFRASTRUCTURE, AND LABOUR-INTENSIVE OPERATIONS.
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
STAFF TURNOVER IS NOT TYPICALLY CONSIDERED A DIRECT CAUSE OF SALES
VOLATILITY. INSTEAD, ECONOMIC CYCLES, SEASONALITY, AND OTHER TIME-
BASED FLUCTUATIONS (E.G., WEEKLY OR INTRA-DAY SALES) ARE
RECOGNIZED CHALLENGES FOR HOTELS.
