Hotel Operations final exam (ch 10-14)
questions and answers graded A+
Account Receivable - ANS ✔-A customer who owes a business for services that have not been
paid
•The bill containing the account of a guest is a "folio"
-Hotels have two types of customers
•Transient guests - Those currently registered and occupying rooms
-The guest in Room# 314
•City Guests - Persons or organizations that owe the hotel but are not currently staying at the
hotel
-VISA, AMEX, Corporation ABC Inc.,
Types of Accounts Receivable - ANS ✔-The Ledger - An accounting book, that contains a set of
accounts
•The Transient Ledger or Front Office Ledger or Guest Ledger or Rooms Ledger
-Where the folios of the current registered guests are kept
•It is maintained at the Front Desk
•Charges are "posted" continually, as incurred by guests
•Bill is presented to the guest on departure
•The City Ledger
-Where the folios of of non-registered guests/organizations are
•It is maintained in the Accounting Office
•Charges are posted periodically and bill is presented for payment periodically
-What is and isn't accounted for
•When guests pay cash directly, no "accounts receivable" is created
,Folio or Bill or Guest Bill or Guest Account or Visitors Account: - ANS ✔-The individual account
receivable
-Location and filing of folios
•Kept at the FO in paper form in manual systems
-Exhibit 10-2, pg.380-381
•Kept in memory of the computer system and printed on demand at the FO in a computerized
system
-Exhibit 10-1, pg.378
-Number of folios
•One per room is most common
•One per guest, when rooms are shared
•One per many rooms, if one guest is paying
Master Accounts - ANS ✔-Used for single-entity groups for common charges, not billable to
individuals
•A convention asks individuals to pay for their rooms, but the organization pays for meals,
cocktail parties etc.,
•Split billing
-The distribution of charges between a Master Account/Folio (A Folio) and a guests personal
folio (B Folio)
•Casino Comps
- Posted to A Folio, others to B Folio
•Preferred-guest Programs
-Room rate to A Folio, others to B
Understanding Charges and Credits - ANS ✔-Charges/Debits - Charges incurred by the guest
that increase the amount owed
, •I eat a meal in the restaurant and sign the bill, so I now owe that much more money to the
hotel
-My account is 'debited" by $15 for the meal
-Credits - Payments made by the guest that reduce the amount owed
•When I check-out, I pay the whole bill of $325 in cash, so my account is "credited" by $325
-Assets - Something a business owns
•Cash, accounts receivable
•Increase in incomes are made with credits
-Sale of room, food, beverages
•Decrease in incomes are made with debits
-Liabilities - Something a business owes
•Accounts payable
-Salaries to be paid at the end of the month
-Equality of debits and credits
•The main principle of dual-entry bookkeeping is that every debit should be matched with an
equal dollar amount credit
Overview of the Billing Procedure - ANS ✔-Preparation of the Folio
•The folio is created when the guest arrives and registers; may be pre-printed if computerized
-Exhibit 10-2, pgs. 380-381 (manual);
-Exhibit 10-9,pg. 393; Exhibit 10-10, pg.395 (electronic)
-Folios are sequentially numbered for control purposes
-All relevant information is on the folio
•Filing the folio
-Electronic folios are in computer memory and printed on demand
-Manual folios are filed sequentially by room number at the FO in cashiers well or pit or bucket
(Exhibit 10-3, pg. 382)
questions and answers graded A+
Account Receivable - ANS ✔-A customer who owes a business for services that have not been
paid
•The bill containing the account of a guest is a "folio"
-Hotels have two types of customers
•Transient guests - Those currently registered and occupying rooms
-The guest in Room# 314
•City Guests - Persons or organizations that owe the hotel but are not currently staying at the
hotel
-VISA, AMEX, Corporation ABC Inc.,
Types of Accounts Receivable - ANS ✔-The Ledger - An accounting book, that contains a set of
accounts
•The Transient Ledger or Front Office Ledger or Guest Ledger or Rooms Ledger
-Where the folios of the current registered guests are kept
•It is maintained at the Front Desk
•Charges are "posted" continually, as incurred by guests
•Bill is presented to the guest on departure
•The City Ledger
-Where the folios of of non-registered guests/organizations are
•It is maintained in the Accounting Office
•Charges are posted periodically and bill is presented for payment periodically
-What is and isn't accounted for
•When guests pay cash directly, no "accounts receivable" is created
,Folio or Bill or Guest Bill or Guest Account or Visitors Account: - ANS ✔-The individual account
receivable
-Location and filing of folios
•Kept at the FO in paper form in manual systems
-Exhibit 10-2, pg.380-381
•Kept in memory of the computer system and printed on demand at the FO in a computerized
system
-Exhibit 10-1, pg.378
-Number of folios
•One per room is most common
•One per guest, when rooms are shared
•One per many rooms, if one guest is paying
Master Accounts - ANS ✔-Used for single-entity groups for common charges, not billable to
individuals
•A convention asks individuals to pay for their rooms, but the organization pays for meals,
cocktail parties etc.,
•Split billing
-The distribution of charges between a Master Account/Folio (A Folio) and a guests personal
folio (B Folio)
•Casino Comps
- Posted to A Folio, others to B Folio
•Preferred-guest Programs
-Room rate to A Folio, others to B
Understanding Charges and Credits - ANS ✔-Charges/Debits - Charges incurred by the guest
that increase the amount owed
, •I eat a meal in the restaurant and sign the bill, so I now owe that much more money to the
hotel
-My account is 'debited" by $15 for the meal
-Credits - Payments made by the guest that reduce the amount owed
•When I check-out, I pay the whole bill of $325 in cash, so my account is "credited" by $325
-Assets - Something a business owns
•Cash, accounts receivable
•Increase in incomes are made with credits
-Sale of room, food, beverages
•Decrease in incomes are made with debits
-Liabilities - Something a business owes
•Accounts payable
-Salaries to be paid at the end of the month
-Equality of debits and credits
•The main principle of dual-entry bookkeeping is that every debit should be matched with an
equal dollar amount credit
Overview of the Billing Procedure - ANS ✔-Preparation of the Folio
•The folio is created when the guest arrives and registers; may be pre-printed if computerized
-Exhibit 10-2, pgs. 380-381 (manual);
-Exhibit 10-9,pg. 393; Exhibit 10-10, pg.395 (electronic)
-Folios are sequentially numbered for control purposes
-All relevant information is on the folio
•Filing the folio
-Electronic folios are in computer memory and printed on demand
-Manual folios are filed sequentially by room number at the FO in cashiers well or pit or bucket
(Exhibit 10-3, pg. 382)
