Travel Agent Proficiency Test Final Review|\ |\ |\ |\ |\ |\
questions with answers |\ |\
Fixed Expenses - CORRECT ANSWERS ✔✔costs that remain
|\ |\ |\ |\ |\ |\ |\ |\
unchanged during a specific period despite changes in the |\ |\ |\ |\ |\ |\ |\ |\ |\
volume of business. |\ |\
Variable Expenses - CORRECT ANSWERS ✔✔are costs that
|\ |\ |\ |\ |\ |\ |\ |\
increase and decrease directly and proportionately with changes
|\ |\ |\ |\ |\ |\ |\ |\
in business volume.
|\ |\
Semi-Variable or Mixed Expenses - CORRECT ANSWERS ✔✔are |\ |\ |\ |\ |\ |\ |\ |\
costs that change in response to a change in business volume,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
but they change by less than a proportional amount.
|\ |\ |\ |\ |\ |\ |\ |\
Income Statement - CORRECT ANSWERS ✔✔summarizes
|\ |\ |\ |\ |\ |\
revenues earned and expenses incurred for a particular period
|\ |\ |\ |\ |\ |\ |\ |\
Balance Sheet - CORRECT ANSWERS ✔✔it shows the financial
|\ |\ |\ |\ |\ |\ |\ |\ |\
position of a business at a particular time and may compare it to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the business's position at the same time of a previous year. This
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
includes assets, liability and equity
|\ |\ |\ |\
Suppliers receive payment in four ways - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Directly from client |\ |\
CC company
|\
In the form of checks from agencies
|\ |\ |\ |\ |\ |\
,Through ARC (Airline Reporting Corporation)
|\ |\ |\ |\
Agents Receive Payments in 3 Ways - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Through ARC |\
By deducting commission prior to sending to supplier
|\ |\ |\ |\ |\ |\ |\
By check from supplier
|\ |\ |\
ARC (AIRLINE REPORTING CORP) - CORRECT ANSWERS ✔✔an
|\ |\ |\ |\ |\ |\ |\ |\
organization owned by major airlines that regulates the sale of |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
airline tickets by appointing those who may sell them.
|\ |\ |\ |\ |\ |\ |\ |\
Accountable Documents - CORRECT ANSWERS ✔✔issues |\ |\ |\ |\ |\ |\
standardized numbered forms that serve as tickets, and it |\ |\ |\ |\ |\ |\ |\ |\ |\
operates a centralized system for processing sales.
|\ |\ |\ |\ |\ |\
Area Bank Settlement Plan - CORRECT ANSWERS ✔✔the system
|\ |\ |\ |\ |\ |\ |\ |\ |\
set up by ARC through which participating suppliers receive
|\ |\ |\ |\ |\ |\ |\ |\ |\
payments for sales by travel agencies |\ |\ |\ |\ |\
ARC Report - CORRECT ANSWERS ✔✔Each travel agency pays the
|\ |\ |\ |\ |\ |\ |\ |\ |\
ARC suppliers weekly by electronically filing a mandatory report
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
of sales
|\
base fare - CORRECT ANSWERS ✔✔the fare shorn of all taxes
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
,Escrow Account - CORRECT ANSWERS ✔✔An account held by a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
third party or a bank that holds on to funds until all requirements
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
are fulfilled for them to be released
|\ |\ |\ |\ |\ |\ |\
overrides - CORRECT ANSWERS ✔✔bonus commissions to
|\ |\ |\ |\ |\ |\ |\
agencies that meet various sales goals or move clients to the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
supplier's products |\
Income for Travel Agencies - CORRECT ANSWERS ✔✔Commission
|\ |\ |\ |\ |\ |\ |\ |\
on sales of transportation, accommodation, cruises, tours and
|\ |\ |\ |\ |\ |\ |\ |\
other services |\
Override commissions |\
Fees and service charges
|\ |\ |\
Markups on net charges |\ |\ |\
Cost Benefit Analysis - CORRECT ANSWERS ✔✔A tool
|\ |\ |\ |\ |\ |\ |\ |\
entrepreneurs use to hold down expenses and ensure profits (ex. |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Buying flowers or gifts for a client)
|\ |\ |\ |\ |\ |\
Consortium - CORRECT ANSWERS ✔✔which is an association of |\ |\ |\ |\ |\ |\ |\ |\ |\
agencies that retain their independent identities but pool their
|\ |\ |\ |\ |\ |\ |\ |\ |\
resources for certain purposes |\ |\ |\
Miscellaneous Charges Order (MCO) - CORRECT ANSWERS ✔✔It |\ |\ |\ |\ |\ |\ |\ |\
records deposits and full prepayments for transportation, tour
|\ |\ |\ |\ |\ |\ |\ |\
packages, supplemental charges, accommodations, or additional
|\ |\ |\ |\ |\ |\
collections. A clear description of the type of service for which it
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
is issued must be indicated on the MCO.
|\ |\ |\ |\ |\ |\ |\
, Voucher - CORRECT ANSWERS ✔✔Any document used to confirm
|\ |\ |\ |\ |\ |\ |\ |\ |\
arrangements, identify clients, or indicate payments made |\ |\ |\ |\ |\ |\
Invoice - CORRECT ANSWERS ✔✔Indicates the amount due from
|\ |\ |\ |\ |\ |\ |\ |\ |\
a client and constitutes an implied contract between the agency
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
and the client for services rendered in exchange for payment
|\ |\ |\ |\ |\ |\ |\ |\ |\
Receipt - CORRECT ANSWERS ✔✔Invoices that indicate an
|\ |\ |\ |\ |\ |\ |\ |\
amount paid and the method of payment. |\ |\ |\ |\ |\ |\
ARC's Industry Handbook - CORRECT ANSWERS ✔✔lists the forms
|\ |\ |\ |\ |\ |\ |\ |\
of payment accepted by specific airlines, and CRSs indicate if a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
particular credit card payment is not acceptable to the airline
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
being used. |\
Travel Agency Service Fee (TASF) program - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔allows agencies to accept credit card purchases for non-ARC
|\ |\ |\ |\ |\ |\ |\ |\ |\
items, such as service charges, and to process them through the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Area Bank Settlement Plan for a 3.5 percent fee
|\ |\ |\ |\ |\ |\ |\ |\
Protocol with checks and travelers checks - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Do not accept checks from anyone unless they are
|\ |\ |\ |\ |\ |\ |\ |\ |\
trustworthy, or if you can hold on to the tickets until the check |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
clears
Do not accept checks from someone else who is not the person
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
booking
Do not accept checks that are over the amount that they are
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
charged
questions with answers |\ |\
Fixed Expenses - CORRECT ANSWERS ✔✔costs that remain
|\ |\ |\ |\ |\ |\ |\ |\
unchanged during a specific period despite changes in the |\ |\ |\ |\ |\ |\ |\ |\ |\
volume of business. |\ |\
Variable Expenses - CORRECT ANSWERS ✔✔are costs that
|\ |\ |\ |\ |\ |\ |\ |\
increase and decrease directly and proportionately with changes
|\ |\ |\ |\ |\ |\ |\ |\
in business volume.
|\ |\
Semi-Variable or Mixed Expenses - CORRECT ANSWERS ✔✔are |\ |\ |\ |\ |\ |\ |\ |\
costs that change in response to a change in business volume,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
but they change by less than a proportional amount.
|\ |\ |\ |\ |\ |\ |\ |\
Income Statement - CORRECT ANSWERS ✔✔summarizes
|\ |\ |\ |\ |\ |\
revenues earned and expenses incurred for a particular period
|\ |\ |\ |\ |\ |\ |\ |\
Balance Sheet - CORRECT ANSWERS ✔✔it shows the financial
|\ |\ |\ |\ |\ |\ |\ |\ |\
position of a business at a particular time and may compare it to
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the business's position at the same time of a previous year. This
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
includes assets, liability and equity
|\ |\ |\ |\
Suppliers receive payment in four ways - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Directly from client |\ |\
CC company
|\
In the form of checks from agencies
|\ |\ |\ |\ |\ |\
,Through ARC (Airline Reporting Corporation)
|\ |\ |\ |\
Agents Receive Payments in 3 Ways - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Through ARC |\
By deducting commission prior to sending to supplier
|\ |\ |\ |\ |\ |\ |\
By check from supplier
|\ |\ |\
ARC (AIRLINE REPORTING CORP) - CORRECT ANSWERS ✔✔an
|\ |\ |\ |\ |\ |\ |\ |\
organization owned by major airlines that regulates the sale of |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
airline tickets by appointing those who may sell them.
|\ |\ |\ |\ |\ |\ |\ |\
Accountable Documents - CORRECT ANSWERS ✔✔issues |\ |\ |\ |\ |\ |\
standardized numbered forms that serve as tickets, and it |\ |\ |\ |\ |\ |\ |\ |\ |\
operates a centralized system for processing sales.
|\ |\ |\ |\ |\ |\
Area Bank Settlement Plan - CORRECT ANSWERS ✔✔the system
|\ |\ |\ |\ |\ |\ |\ |\ |\
set up by ARC through which participating suppliers receive
|\ |\ |\ |\ |\ |\ |\ |\ |\
payments for sales by travel agencies |\ |\ |\ |\ |\
ARC Report - CORRECT ANSWERS ✔✔Each travel agency pays the
|\ |\ |\ |\ |\ |\ |\ |\ |\
ARC suppliers weekly by electronically filing a mandatory report
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
of sales
|\
base fare - CORRECT ANSWERS ✔✔the fare shorn of all taxes
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
,Escrow Account - CORRECT ANSWERS ✔✔An account held by a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
third party or a bank that holds on to funds until all requirements
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
are fulfilled for them to be released
|\ |\ |\ |\ |\ |\ |\
overrides - CORRECT ANSWERS ✔✔bonus commissions to
|\ |\ |\ |\ |\ |\ |\
agencies that meet various sales goals or move clients to the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
supplier's products |\
Income for Travel Agencies - CORRECT ANSWERS ✔✔Commission
|\ |\ |\ |\ |\ |\ |\ |\
on sales of transportation, accommodation, cruises, tours and
|\ |\ |\ |\ |\ |\ |\ |\
other services |\
Override commissions |\
Fees and service charges
|\ |\ |\
Markups on net charges |\ |\ |\
Cost Benefit Analysis - CORRECT ANSWERS ✔✔A tool
|\ |\ |\ |\ |\ |\ |\ |\
entrepreneurs use to hold down expenses and ensure profits (ex. |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Buying flowers or gifts for a client)
|\ |\ |\ |\ |\ |\
Consortium - CORRECT ANSWERS ✔✔which is an association of |\ |\ |\ |\ |\ |\ |\ |\ |\
agencies that retain their independent identities but pool their
|\ |\ |\ |\ |\ |\ |\ |\ |\
resources for certain purposes |\ |\ |\
Miscellaneous Charges Order (MCO) - CORRECT ANSWERS ✔✔It |\ |\ |\ |\ |\ |\ |\ |\
records deposits and full prepayments for transportation, tour
|\ |\ |\ |\ |\ |\ |\ |\
packages, supplemental charges, accommodations, or additional
|\ |\ |\ |\ |\ |\
collections. A clear description of the type of service for which it
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
is issued must be indicated on the MCO.
|\ |\ |\ |\ |\ |\ |\
, Voucher - CORRECT ANSWERS ✔✔Any document used to confirm
|\ |\ |\ |\ |\ |\ |\ |\ |\
arrangements, identify clients, or indicate payments made |\ |\ |\ |\ |\ |\
Invoice - CORRECT ANSWERS ✔✔Indicates the amount due from
|\ |\ |\ |\ |\ |\ |\ |\ |\
a client and constitutes an implied contract between the agency
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
and the client for services rendered in exchange for payment
|\ |\ |\ |\ |\ |\ |\ |\ |\
Receipt - CORRECT ANSWERS ✔✔Invoices that indicate an
|\ |\ |\ |\ |\ |\ |\ |\
amount paid and the method of payment. |\ |\ |\ |\ |\ |\
ARC's Industry Handbook - CORRECT ANSWERS ✔✔lists the forms
|\ |\ |\ |\ |\ |\ |\ |\
of payment accepted by specific airlines, and CRSs indicate if a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
particular credit card payment is not acceptable to the airline
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
being used. |\
Travel Agency Service Fee (TASF) program - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔allows agencies to accept credit card purchases for non-ARC
|\ |\ |\ |\ |\ |\ |\ |\ |\
items, such as service charges, and to process them through the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Area Bank Settlement Plan for a 3.5 percent fee
|\ |\ |\ |\ |\ |\ |\ |\
Protocol with checks and travelers checks - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Do not accept checks from anyone unless they are
|\ |\ |\ |\ |\ |\ |\ |\ |\
trustworthy, or if you can hold on to the tickets until the check |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
clears
Do not accept checks from someone else who is not the person
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
booking
Do not accept checks that are over the amount that they are
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
charged
