TEST BANK
For
TU
Accounting and Financial Analysis in the
TO
Hospitality Industry 1st Edition
By Johnathan Hales, Hubert Van Hoof
R
G
(All Chapters, 100% Original Verified, A+
U
Grade)
R
U
, Test 1A_Part 1: Chapter 1-3
Exam
Name___________________________________
MATCHING. Choose the item in column 2 that best matches each item in column 1.
Match the term with the correct definition.
1) A hotel department that provides A) Retention
1)
support to the operating departments
of a hotel B) RevPAR
2) Statement that measures the liquidity C) Statement of Cash Flow 2)
TU
of a company
D) Liquidity
3) The change in profit $ divided by the
3)
change in revenue $
E) Balance Sheet
4) The amount of money used in the
F) P&L Statement 4)
daily operations of a business
TO
G) Forecast
5) Members of senior management that
5)
report directly to the General Manager
H) Operating Department
6) The amount of cash or cash
I) Working Capital 6)
equivalents that a business has to
R
cover its daily operating expenses
J) Staff Department
7) An important measure of a hotel’s
7)
ability to generate room revenue K) Budget
G
8) Measures the value or net worth of a L) Executive Committee
8)
company
U
9) Updates the budget, weekly, monthly
9)
or quarterly
R
10) The one year formal financial plan of a
10)
business
U
11) A hotel department that records
11)
revenues and produces a profit by
providing products and services to
paying customers
12) Measures the operating success of a
12)
company
1
,ESSAY. Write your answer in the space provided or on a separate sheet of paper.
13) Name five characteristics of the Statement of Cash Flow.
14) What are the four steps in the Financial Management Cycle?
15) Name four measurements on a Profit and Loss Statement that a company’s actual financial performance is
compared to.
16) The 600 room Flagstaff Hotel reported the following results for the month of January. Calculate both the $
variation and % variation for each category.
Variation Actual Budget $ Variation % Variation
TU
Room Revenue $1,225,000 $1,200,000
Room Profit 910,000 900,000
Rooms Sold 12,200 12,500
Occupancy % 65.6% 67.2%
Average Room Rate $100.40 $96.00
TO
17) Why is RevPAR so important in analyzing the financial performance of hotels?
18) Actual room sales and rooms sold for the Flagstaff Hotel were as follows. Calculate the rooms sales and rooms sold mix
percentage.
Room Sold
R
Room Sales Room Sold Sales Mix % Mix %
Transient Rooms $ 753,000 8,200
Group Rooms 395,00 4,000
G
Contract Rooms 114,000 1,000
Totals $ 1,262,00 13,200
U
19) Name three different areas or departments in the accounting office.
20) Name four different profit levels in a hotel.
R
21) Calculate the wage cost percent, operating cost percent and the profit percent for the following information:
Actual Results Cost/Profit Percent
U
Room Sales $ 1,200,000
Wage Cost 150,000
Operating Cost 100,000
Rooms Profit $ 950,000
22) Name the four ways percentages are used in financial analysis.
2
, 23) The 600 room Flagstaff Hotel recorded $61,950 in revenue with 550 room sold last night. Calculate the
following:
Occupancy %
Average Room Rate
REVPAR
24) Name five characteristics of the Balance Sheet.
25) Write the formulas for the following:
Average Room Rate
Occupancy %
Profit %
REVPAR
TU
Cost %
26) Name the four important trends used in financial analysis.
27) What are the two ways numbers are used in financial analysis?
TO
28) Food beginning inventory is $15,000 and Cash beginning balance is $30,000. You purchase $6,000 in food
supplies to be paid for at the end of the month and $2,500 in purchases that were paid for immediately. You also
put $8,000 of inventory into production. Set up the necessary Balance Sheet and P&L Statement accounts and
post these transactions to the appropriate accounts. Do not give journal entries! Post amounts to accounts.
29) Changes both positive and negative are measured in terms of:
R
30) Name five characteristics of the P&L Statement.
31) Name four levels of management and hourly positions that are part of a hotel organization chart.
G
U
R
U
3
For
TU
Accounting and Financial Analysis in the
TO
Hospitality Industry 1st Edition
By Johnathan Hales, Hubert Van Hoof
R
G
(All Chapters, 100% Original Verified, A+
U
Grade)
R
U
, Test 1A_Part 1: Chapter 1-3
Exam
Name___________________________________
MATCHING. Choose the item in column 2 that best matches each item in column 1.
Match the term with the correct definition.
1) A hotel department that provides A) Retention
1)
support to the operating departments
of a hotel B) RevPAR
2) Statement that measures the liquidity C) Statement of Cash Flow 2)
TU
of a company
D) Liquidity
3) The change in profit $ divided by the
3)
change in revenue $
E) Balance Sheet
4) The amount of money used in the
F) P&L Statement 4)
daily operations of a business
TO
G) Forecast
5) Members of senior management that
5)
report directly to the General Manager
H) Operating Department
6) The amount of cash or cash
I) Working Capital 6)
equivalents that a business has to
R
cover its daily operating expenses
J) Staff Department
7) An important measure of a hotel’s
7)
ability to generate room revenue K) Budget
G
8) Measures the value or net worth of a L) Executive Committee
8)
company
U
9) Updates the budget, weekly, monthly
9)
or quarterly
R
10) The one year formal financial plan of a
10)
business
U
11) A hotel department that records
11)
revenues and produces a profit by
providing products and services to
paying customers
12) Measures the operating success of a
12)
company
1
,ESSAY. Write your answer in the space provided or on a separate sheet of paper.
13) Name five characteristics of the Statement of Cash Flow.
14) What are the four steps in the Financial Management Cycle?
15) Name four measurements on a Profit and Loss Statement that a company’s actual financial performance is
compared to.
16) The 600 room Flagstaff Hotel reported the following results for the month of January. Calculate both the $
variation and % variation for each category.
Variation Actual Budget $ Variation % Variation
TU
Room Revenue $1,225,000 $1,200,000
Room Profit 910,000 900,000
Rooms Sold 12,200 12,500
Occupancy % 65.6% 67.2%
Average Room Rate $100.40 $96.00
TO
17) Why is RevPAR so important in analyzing the financial performance of hotels?
18) Actual room sales and rooms sold for the Flagstaff Hotel were as follows. Calculate the rooms sales and rooms sold mix
percentage.
Room Sold
R
Room Sales Room Sold Sales Mix % Mix %
Transient Rooms $ 753,000 8,200
Group Rooms 395,00 4,000
G
Contract Rooms 114,000 1,000
Totals $ 1,262,00 13,200
U
19) Name three different areas or departments in the accounting office.
20) Name four different profit levels in a hotel.
R
21) Calculate the wage cost percent, operating cost percent and the profit percent for the following information:
Actual Results Cost/Profit Percent
U
Room Sales $ 1,200,000
Wage Cost 150,000
Operating Cost 100,000
Rooms Profit $ 950,000
22) Name the four ways percentages are used in financial analysis.
2
, 23) The 600 room Flagstaff Hotel recorded $61,950 in revenue with 550 room sold last night. Calculate the
following:
Occupancy %
Average Room Rate
REVPAR
24) Name five characteristics of the Balance Sheet.
25) Write the formulas for the following:
Average Room Rate
Occupancy %
Profit %
REVPAR
TU
Cost %
26) Name the four important trends used in financial analysis.
27) What are the two ways numbers are used in financial analysis?
TO
28) Food beginning inventory is $15,000 and Cash beginning balance is $30,000. You purchase $6,000 in food
supplies to be paid for at the end of the month and $2,500 in purchases that were paid for immediately. You also
put $8,000 of inventory into production. Set up the necessary Balance Sheet and P&L Statement accounts and
post these transactions to the appropriate accounts. Do not give journal entries! Post amounts to accounts.
29) Changes both positive and negative are measured in terms of:
R
30) Name five characteristics of the P&L Statement.
31) Name four levels of management and hourly positions that are part of a hotel organization chart.
G
U
R
U
3
