,Accounting Essentials for Hospitality Managers, 3e Chris Guilding
N1 N1 N1 N1 N1 N 1 N1
(Test Bank All Chapters, 100% Original Verified, A+ Grade)
N1 N1 N1 N1 N1 N1 N1 N1 N1
Test Bank to accompany N1 N1 N1
Accounting Essentials for Hospitality Managers N1 N1 N1 N1
Chapter 1: Introduction: Hospitality Decision Makers’ Use of Accounting
N1 N1 N1 N1 N1 N1 N1 N1
1. Which of the following is not an example of a sector that
N 1 N 1 N 1 N 1 N 1 N 1 N 1 N 1 N 1 N 1 N 1 N 1 can N 1 be
classified within the hospitality industry?
N 1 N 1 N 1 N1 N1
A. Cruise liners N1
B. Country and sports clubs N1 N1 N1
C. Pubs and bars N1 N1
D. Fast-food outlets N1
E. All of the above can be classified within the hospitality industry
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
2. Which of the following statements is not true?
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A. Designing a large hotel‟s organisational structure and accounting system is
N1 N1 N1 N1 N1 N1 N1 N1 N1
complicated by the need to co-ordinate a range of disparate functions that
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
typically include the provision of accommodation, restaurant and bar facilities.
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
B. Hotels can be distinguished from most other service sectors as the location of
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
the service provision is also the place where the customer purchases and
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
consumes the services offered.
N1 N1 N1 N1
C. High functional interdependency facilitates departmental accountability.
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D. The nature of management decision making in connection with selling rooms in a
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
hotel can be likened to the sale of seats in the airline or entertainment
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
industries.
N1
E. Hotels‟ high sales volatility makes accurate budgeting more challenging.
N1 N1 N1 N1 N1 N1 N1 N1
3. Which of the following is not a key characteristic of the hotel industry?
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A. High sales volatility.
N1 N1
B. High product perishability.
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C. High proportion of fixed costs.
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D. High proportion of labour intensive activities.
N1 N1 N1 N1 N1
E. All of the above are key characteristics of the hotel industry
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
4. Which of the following is not a generally acknowledged sales volatility
N 1 N1 N1 N1 N1 N1 N1 N1 N1 N1
challenge that is evident in the hotel industry?
N1 N1 N1 N1 N1 N1 N1 N1
A. Economic cycle volatility N1 N1
B. Seasonal sales volatility N1 N1
C. Staff turnover sales volatility
N1 N1 N1
D. Weekly sales volatility N1 N1
E. Intra-day sales volatility N1 N1
,5. Which of the following is not a true statement?
N1 N1 N1 N1 N1 N1 N1 N1
A. Relative to purchases in most other commercial contexts, there tends to be a
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
short time span between order placement, production and sale of many items
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
in a restaurant kitchen.
N1 N1 N1 N1
B. A high proportion of a hotel‟s costs do not vary in line with sales levels.
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
C. Relative to most other industries, activities conducted in the hotel
N1 N1 N1 N1 N1 N1 N1 N1 N1
industry are not labour intensive.
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D. Achieving standardised approaches to reporting is more of a concern
N 1 N 1 N 1 N 1 N 1 N 1 N 1 N 1 N 1
in financial accounting than in management accounting.
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E. Management accounting is less standardised than financial accounting.
N1 N1 N1 N1 N1 N1 N1
6. Which of the following statements is untrue?
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A. A lack of confidence in financial accounting systems would likely make it
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
harder to raise debt and equity funding.
N1 N1 N1 N1 N1 N1 N1
B. Management accounting systems are designed to help managers in their
N1 N1 N1 N1 N1 N1 N1 N1 N1
decision making and control of businesses.
N1 N1 N1 N1 N1 N1
C. Greater use of the Uniform System of Accounts is signifying increased
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
standardisation of hotel account classification schemes and also financial
N1 N1 N1 N1 N1 N1 N1 N1 N1
performance reports produced by hotels.
N1 N1 N1 N1 N1
D. The accounting system is one of several information systems that monitor the
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
performance of all departments within hotels.
N1 N1 N1 N1 N1 N1
E. For the sake of a healthy economy, it is important that a reliable financial
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
accounting system is established.
N1 N1 N1 N1
7. Which of the following is not a true statement?
N1 N1 N1 N1 N1 N1 N1 N1
A. Financial accounting concerns the preparation of financial reports for external
N1 N1 N1 N1 N1 N1 N1 N1 N1
users on a monthly basis.
N1 N1 N1 N1 N1
B. Management accounting concerns the provision of financial reports to managers.
N1 N1 N1 N1 N1 N1 N1 N1 N1
C. Management accounting reports can be produced using non- N 1 N 1 N 1 N 1 N 1 N 1 N 1
standardised formats across companies.
N 1 N 1 N1 N1
D. For most organisations, the accounting system can be seen as the most
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
extensive and all encompassing information system.
N1 N1 N1 N1 N1 N1
E. A reducing level of confidence in financial accounting systems would translate
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
into a greater reluctance for equity providers to invest in companies.
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
8. In the context of hotel management, which of the following does not represent an
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
example of high perishability with respect to a sales opportunity?
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A. A specific room night.
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B. A delivery of strawberries.
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C. A delivery of bottled beer.
N1 N1 N1 N1
D. A large conference room for a specific day.
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E. None of the above, they are all examples of products or services with high perishability.
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
, 9. Which of the following is not a true statement?
N1 N1 N1 N1 N1 N1 N1 N1
A. Compared to the hotel sector, most business sectors experience a relatively high
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
degree of economic cycle related sales volatility.
N1 N1 N1 N1 N1 N1 N1
B. The hotel sector is subject to high seasonal sales volatility.
N1 N1 N1 N1 N1 N1 N1 N1 N1
C. The hotel sector is subject to high weekly sales volatility.
N1 N1 N1 N1 N1 N1 N1 N1 N1
D. The hotel sector is subject to high intra-day sales volatility.
N1 N1 N1 N1 N1 N1 N1 N1 N1
E. Sales volatility can be expected to be greater in tourism hotels than in hotels
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
located in central business districts.
N1 N1 N1 N1 N1
10. The Uniform System of Accounts:
N1 N1 N1 N1
A. represents an “off the shelf” accounting system that can be adopted by any
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
business in the hotel industry.
N1 N1 N1 N1 N1
B. is a system that can be viewed as “state of the art” as it benefits from the
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
accumulated experience of the parties that have contributed to the system‟s
N 1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
development over many years.
N1 N1 N1 N1
C. promotes consistent account classification schemes as well as consistent
N1 N1 N1 N1 N1 N1 N1 N1
presentation of performance reports and therefore facilitates comparison across
N1 N1 N1 N1 N1 N1 N1 N1 N1
hotels.
N1
D. represents a common point of reference for hotels within the same hotel group.
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
E. All of the above are true.
N1 N1 N1 N1 N1
11. Which of the following statements is not true:
N1 N1 N1 N1 N1 N1 N1
A. The hospitality industry encompasses a narrow range of activities and types of
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
organisations.
N1
B. A large hotel‟s organisational structure and accounting system should be
N1 N1 N1 N1 N1 N1 N1 N1 N1
designed with due regard given to co-ordinating a range of functions that
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
will frequently include the provision of accommodation, restaurant and bar
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
facilities.
N1
C. The sale of a hotel‟s rooms can be likened to the sale of seats in the airline industry.
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
D. A parallel exists between food preparation in restaurant kitchens and
N1 N1 N1 N1 N1 N1 N1 N1 N1
production activities in manufacturing organisations.
N1 N1 N1 N1 N1
E. Bar operations can be likened to retailing.
N1 N1 N1 N1 N1 N1
12. Which of the following statements is not true:
N1 N1 N1 N1 N1 N1 N1
A. The uniform system of accounts represents an “off the shelf” accounting
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
system that can be adopted by any business in the hotel industry.
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
B. The uniform system of accounts is a system that can be viewed as “state of
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
the art” as it benefits from the accumulated experience of the parties that
N1 N1 N 1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
have contributed to the system‟s development over many years.
N1 N1 N1 N1 N1 N1 N1 N1 N1
C. The uniform system of accounts promotes consistent account classification
N1 N1 N1 N1 N1 N1 N1 N1
schemes as well as consistent presentation of performance reports and
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
therefore facilitates comparison across hotels.
N1 N1 N1 N1 N1
D. The uniform system of accounts signifies that all hotels should use the same
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
management accounting system.
N1 N1 N1
E. The uniform system of accounts represents a common point of reference for
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
hotels within the same hotel group.
N1 N1 N1 N1 N1 N1
N1 N1 N1 N1 N1 N 1 N1
(Test Bank All Chapters, 100% Original Verified, A+ Grade)
N1 N1 N1 N1 N1 N1 N1 N1 N1
Test Bank to accompany N1 N1 N1
Accounting Essentials for Hospitality Managers N1 N1 N1 N1
Chapter 1: Introduction: Hospitality Decision Makers’ Use of Accounting
N1 N1 N1 N1 N1 N1 N1 N1
1. Which of the following is not an example of a sector that
N 1 N 1 N 1 N 1 N 1 N 1 N 1 N 1 N 1 N 1 N 1 N 1 can N 1 be
classified within the hospitality industry?
N 1 N 1 N 1 N1 N1
A. Cruise liners N1
B. Country and sports clubs N1 N1 N1
C. Pubs and bars N1 N1
D. Fast-food outlets N1
E. All of the above can be classified within the hospitality industry
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
2. Which of the following statements is not true?
N1 N1 N1 N1 N1 N1 N1
A. Designing a large hotel‟s organisational structure and accounting system is
N1 N1 N1 N1 N1 N1 N1 N1 N1
complicated by the need to co-ordinate a range of disparate functions that
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
typically include the provision of accommodation, restaurant and bar facilities.
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
B. Hotels can be distinguished from most other service sectors as the location of
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
the service provision is also the place where the customer purchases and
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
consumes the services offered.
N1 N1 N1 N1
C. High functional interdependency facilitates departmental accountability.
N1 N1 N1 N1 N1
D. The nature of management decision making in connection with selling rooms in a
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
hotel can be likened to the sale of seats in the airline or entertainment
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
industries.
N1
E. Hotels‟ high sales volatility makes accurate budgeting more challenging.
N1 N1 N1 N1 N1 N1 N1 N1
3. Which of the following is not a key characteristic of the hotel industry?
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
A. High sales volatility.
N1 N1
B. High product perishability.
N1 N1
C. High proportion of fixed costs.
N1 N1 N1 N1
D. High proportion of labour intensive activities.
N1 N1 N1 N1 N1
E. All of the above are key characteristics of the hotel industry
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
4. Which of the following is not a generally acknowledged sales volatility
N 1 N1 N1 N1 N1 N1 N1 N1 N1 N1
challenge that is evident in the hotel industry?
N1 N1 N1 N1 N1 N1 N1 N1
A. Economic cycle volatility N1 N1
B. Seasonal sales volatility N1 N1
C. Staff turnover sales volatility
N1 N1 N1
D. Weekly sales volatility N1 N1
E. Intra-day sales volatility N1 N1
,5. Which of the following is not a true statement?
N1 N1 N1 N1 N1 N1 N1 N1
A. Relative to purchases in most other commercial contexts, there tends to be a
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
short time span between order placement, production and sale of many items
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
in a restaurant kitchen.
N1 N1 N1 N1
B. A high proportion of a hotel‟s costs do not vary in line with sales levels.
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
C. Relative to most other industries, activities conducted in the hotel
N1 N1 N1 N1 N1 N1 N1 N1 N1
industry are not labour intensive.
N1 N1 N1 N1 N1
D. Achieving standardised approaches to reporting is more of a concern
N 1 N 1 N 1 N 1 N 1 N 1 N 1 N 1 N 1
in financial accounting than in management accounting.
N 1 N 1 N1 N1 N1 N1 N1
E. Management accounting is less standardised than financial accounting.
N1 N1 N1 N1 N1 N1 N1
6. Which of the following statements is untrue?
N1 N1 N1 N1 N1 N1
A. A lack of confidence in financial accounting systems would likely make it
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
harder to raise debt and equity funding.
N1 N1 N1 N1 N1 N1 N1
B. Management accounting systems are designed to help managers in their
N1 N1 N1 N1 N1 N1 N1 N1 N1
decision making and control of businesses.
N1 N1 N1 N1 N1 N1
C. Greater use of the Uniform System of Accounts is signifying increased
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
standardisation of hotel account classification schemes and also financial
N1 N1 N1 N1 N1 N1 N1 N1 N1
performance reports produced by hotels.
N1 N1 N1 N1 N1
D. The accounting system is one of several information systems that monitor the
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
performance of all departments within hotels.
N1 N1 N1 N1 N1 N1
E. For the sake of a healthy economy, it is important that a reliable financial
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
accounting system is established.
N1 N1 N1 N1
7. Which of the following is not a true statement?
N1 N1 N1 N1 N1 N1 N1 N1
A. Financial accounting concerns the preparation of financial reports for external
N1 N1 N1 N1 N1 N1 N1 N1 N1
users on a monthly basis.
N1 N1 N1 N1 N1
B. Management accounting concerns the provision of financial reports to managers.
N1 N1 N1 N1 N1 N1 N1 N1 N1
C. Management accounting reports can be produced using non- N 1 N 1 N 1 N 1 N 1 N 1 N 1
standardised formats across companies.
N 1 N 1 N1 N1
D. For most organisations, the accounting system can be seen as the most
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
extensive and all encompassing information system.
N1 N1 N1 N1 N1 N1
E. A reducing level of confidence in financial accounting systems would translate
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
into a greater reluctance for equity providers to invest in companies.
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
8. In the context of hotel management, which of the following does not represent an
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
example of high perishability with respect to a sales opportunity?
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
A. A specific room night.
N1 N1 N1
B. A delivery of strawberries.
N1 N1 N1
C. A delivery of bottled beer.
N1 N1 N1 N1
D. A large conference room for a specific day.
N1 N1 N1 N1 N1 N1 N1
E. None of the above, they are all examples of products or services with high perishability.
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
, 9. Which of the following is not a true statement?
N1 N1 N1 N1 N1 N1 N1 N1
A. Compared to the hotel sector, most business sectors experience a relatively high
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
degree of economic cycle related sales volatility.
N1 N1 N1 N1 N1 N1 N1
B. The hotel sector is subject to high seasonal sales volatility.
N1 N1 N1 N1 N1 N1 N1 N1 N1
C. The hotel sector is subject to high weekly sales volatility.
N1 N1 N1 N1 N1 N1 N1 N1 N1
D. The hotel sector is subject to high intra-day sales volatility.
N1 N1 N1 N1 N1 N1 N1 N1 N1
E. Sales volatility can be expected to be greater in tourism hotels than in hotels
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
located in central business districts.
N1 N1 N1 N1 N1
10. The Uniform System of Accounts:
N1 N1 N1 N1
A. represents an “off the shelf” accounting system that can be adopted by any
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
business in the hotel industry.
N1 N1 N1 N1 N1
B. is a system that can be viewed as “state of the art” as it benefits from the
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
accumulated experience of the parties that have contributed to the system‟s
N 1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
development over many years.
N1 N1 N1 N1
C. promotes consistent account classification schemes as well as consistent
N1 N1 N1 N1 N1 N1 N1 N1
presentation of performance reports and therefore facilitates comparison across
N1 N1 N1 N1 N1 N1 N1 N1 N1
hotels.
N1
D. represents a common point of reference for hotels within the same hotel group.
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
E. All of the above are true.
N1 N1 N1 N1 N1
11. Which of the following statements is not true:
N1 N1 N1 N1 N1 N1 N1
A. The hospitality industry encompasses a narrow range of activities and types of
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
organisations.
N1
B. A large hotel‟s organisational structure and accounting system should be
N1 N1 N1 N1 N1 N1 N1 N1 N1
designed with due regard given to co-ordinating a range of functions that
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
will frequently include the provision of accommodation, restaurant and bar
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
facilities.
N1
C. The sale of a hotel‟s rooms can be likened to the sale of seats in the airline industry.
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
D. A parallel exists between food preparation in restaurant kitchens and
N1 N1 N1 N1 N1 N1 N1 N1 N1
production activities in manufacturing organisations.
N1 N1 N1 N1 N1
E. Bar operations can be likened to retailing.
N1 N1 N1 N1 N1 N1
12. Which of the following statements is not true:
N1 N1 N1 N1 N1 N1 N1
A. The uniform system of accounts represents an “off the shelf” accounting
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
system that can be adopted by any business in the hotel industry.
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
B. The uniform system of accounts is a system that can be viewed as “state of
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
the art” as it benefits from the accumulated experience of the parties that
N1 N1 N 1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
have contributed to the system‟s development over many years.
N1 N1 N1 N1 N1 N1 N1 N1 N1
C. The uniform system of accounts promotes consistent account classification
N1 N1 N1 N1 N1 N1 N1 N1
schemes as well as consistent presentation of performance reports and
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
therefore facilitates comparison across hotels.
N1 N1 N1 N1 N1
D. The uniform system of accounts signifies that all hotels should use the same
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
management accounting system.
N1 N1 N1
E. The uniform system of accounts represents a common point of reference for
N1 N1 N1 N1 N1 N1 N1 N1 N1 N1 N1
hotels within the same hotel group.
N1 N1 N1 N1 N1 N1
