CHIA CERTIFICATION EXAM PREPARATION
VERSION 1 NEWEST 2026-2027 WITH COMPLETE
QUESTIONS AND CORRECT ANSWERS |BRAND
NEW VERSION!
1. Which financial statement provides a snapshot of a hotel’s
financial position at a specific point in time?
A. Income Statement
B. Statement of Cash Flows
C. Balance Sheet
D. Statement of Owner’s Equity
Rationale: The balance sheet shows assets, liabilities, and
equity at a specific date. Income statements reflect
performance over a period, not a point in time.
Correct Answer: C
2. In hospitality accounting, which of the following is
considered a current asset?
A. Land
B. Accounts Receivable
C. Long-term Debt
D. Building
Rationale: Current assets are resources expected to be
converted into cash within one year. Accounts receivable
,represents money owed to the hotel in the short term.
Correct Answer: B
3. Which revenue center in a hotel typically generates the
highest gross profit margin?
A. Rooms Division
B. Food & Beverage
C. Spa & Wellness
D. Gift Shop
Rationale: Rooms division generally has the highest gross profit
margin because rooms have low variable costs compared to
other revenue centers.
Correct Answer: A
4. Occupancy percentage is calculated by which formula?
A. (Rooms Sold ÷ Total Rooms Available) × 100
B. (Revenue ÷ Expenses) × 100
C. (Total Guests ÷ Total Rooms) × 100
D. (Rooms Available ÷ Rooms Sold) × 100
Rationale: Occupancy percentage measures the proportion of
rooms sold relative to total rooms available.
Correct Answer: A
,5. RevPAR (Revenue per Available Room) can be increased by:
A. Raising room rates while keeping occupancy constant
B. Increasing occupancy while keeping rates constant
C. Both A and B
D. Reducing operational costs
Rationale: RevPAR depends on both room rate and occupancy.
Increasing either increases RevPAR.
Correct Answer: C
6. Which of the following is an example of a variable cost in
hotel operations?
A. Salaries of full-time staff
B. Utilities for common areas
C. Laundry costs per occupied room
D. Building depreciation
Rationale: Variable costs change with activity level. Laundry
costs increase as more rooms are occupied.
Correct Answer: C
7. In hospitality budgeting, the term “ADR” stands for:
A. Actual Daily Revenue
B. Average Daily Rate
C. Adjusted Debt Ratio
D. Annual Depreciation Rate
, Rationale: ADR measures the average revenue earned per
occupied room and is crucial for revenue management.
Correct Answer: B
8. Which of the following best describes the purpose of a
departmental income statement in a hotel?
A. To evaluate overall profitability of the hotel
B. To track performance of individual departments
C. To calculate taxes owed by the hotel
D. To prepare cash flow statements
Rationale: Departmental income statements break down
revenues and expenses by department to assess performance.
Correct Answer: B
9. A hotel purchased furniture for $50,000 with a useful life of
10 years. Using straight-line depreciation, the annual
depreciation expense is:
A. $2,500
B. $5,000
C. $10,000
D. $50,000
Rationale: Straight-line depreciation = Cost ÷ Useful Life =
$50,000 ÷ 10 = $5,000 per year.
Correct Answer: B
VERSION 1 NEWEST 2026-2027 WITH COMPLETE
QUESTIONS AND CORRECT ANSWERS |BRAND
NEW VERSION!
1. Which financial statement provides a snapshot of a hotel’s
financial position at a specific point in time?
A. Income Statement
B. Statement of Cash Flows
C. Balance Sheet
D. Statement of Owner’s Equity
Rationale: The balance sheet shows assets, liabilities, and
equity at a specific date. Income statements reflect
performance over a period, not a point in time.
Correct Answer: C
2. In hospitality accounting, which of the following is
considered a current asset?
A. Land
B. Accounts Receivable
C. Long-term Debt
D. Building
Rationale: Current assets are resources expected to be
converted into cash within one year. Accounts receivable
,represents money owed to the hotel in the short term.
Correct Answer: B
3. Which revenue center in a hotel typically generates the
highest gross profit margin?
A. Rooms Division
B. Food & Beverage
C. Spa & Wellness
D. Gift Shop
Rationale: Rooms division generally has the highest gross profit
margin because rooms have low variable costs compared to
other revenue centers.
Correct Answer: A
4. Occupancy percentage is calculated by which formula?
A. (Rooms Sold ÷ Total Rooms Available) × 100
B. (Revenue ÷ Expenses) × 100
C. (Total Guests ÷ Total Rooms) × 100
D. (Rooms Available ÷ Rooms Sold) × 100
Rationale: Occupancy percentage measures the proportion of
rooms sold relative to total rooms available.
Correct Answer: A
,5. RevPAR (Revenue per Available Room) can be increased by:
A. Raising room rates while keeping occupancy constant
B. Increasing occupancy while keeping rates constant
C. Both A and B
D. Reducing operational costs
Rationale: RevPAR depends on both room rate and occupancy.
Increasing either increases RevPAR.
Correct Answer: C
6. Which of the following is an example of a variable cost in
hotel operations?
A. Salaries of full-time staff
B. Utilities for common areas
C. Laundry costs per occupied room
D. Building depreciation
Rationale: Variable costs change with activity level. Laundry
costs increase as more rooms are occupied.
Correct Answer: C
7. In hospitality budgeting, the term “ADR” stands for:
A. Actual Daily Revenue
B. Average Daily Rate
C. Adjusted Debt Ratio
D. Annual Depreciation Rate
, Rationale: ADR measures the average revenue earned per
occupied room and is crucial for revenue management.
Correct Answer: B
8. Which of the following best describes the purpose of a
departmental income statement in a hotel?
A. To evaluate overall profitability of the hotel
B. To track performance of individual departments
C. To calculate taxes owed by the hotel
D. To prepare cash flow statements
Rationale: Departmental income statements break down
revenues and expenses by department to assess performance.
Correct Answer: B
9. A hotel purchased furniture for $50,000 with a useful life of
10 years. Using straight-line depreciation, the annual
depreciation expense is:
A. $2,500
B. $5,000
C. $10,000
D. $50,000
Rationale: Straight-line depreciation = Cost ÷ Useful Life =
$50,000 ÷ 10 = $5,000 per year.
Correct Answer: B
