HOSPITALITY REVENUE MANAGEMENT FINAL EXAM
ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS
|| ALREADY GRADED A+||ALREADY GRADED A+
The primary purpose of accounting is to report on an organization's? -CORRECT
ANSWER money and valuable property.
When does accounting for a business begin? -CORRECT ANSWER Before the
business opens
The best definition of an accountant is a person who -CORRECT ANSWER is skilled in
the recording and reporting of financial transactions.
Which governmental entity establishes standards, and then awards qualified individuals
the Certified Public Accountant (CPA) designation? -CORRECT ANSWER State
Which branch of accounting concerns itself with the independent verification of financial
records? -CORRECT ANSWER Auditing
Items owned by a business are referred to as -CORRECT ANSWER assets
Which is the primary concern of financial accounting? -CORRECT ANSWER Recording
financial transactions
Which is a question that could NOT be best CORRECT ANSWERed strictly on the
basis of accounting data? -CORRECT ANSWER Which current bartender should we
promote to Head Bartender?
Assets = Liabilities + Owners? Equity, is referred to as the -CORRECT ANSWER basic
accounting equation.
When properly used, accounting helps hospitality managers -CORRECT ANSWER
make better decisions.
A restaurant owner records his purchases of food and beverage as an expense when
they are purchased, and who does not record end of accounting period inventory values
is violating the -CORRECT ANSWER Matching Principle.
, Which is the accounting summary that presents the financial condition, or financial
health, of a business? -CORRECT ANSWER Balance Sheet
In the hospitality industry, a point of sale (POS) system is used to record -CORRECT
ANSWER guest sales, payments and other information.
Which portion of a hospitality business?s transaction and analysis process would most
often by undertaken by the business?s owner or general manager? -CORRECT
ANSWER Financial analysis
Which is the basic accounting equation that is applicable to every business? -
CORRECT ANSWER Assets = Liabilities + Owners' Equity
Which is the foundation of accurate financial reporting and analysis? -CORRECT
ANSWER Bookkeeping
In the hospitality industry, a property management system (PMS) is used to record -
CORRECT ANSWER customer transactions that take place at a hotel's front desk.
Which would be the first action to occur in a hospitality business?s transaction recording
and analysis process? -CORRECT ANSWER Guest purchase
What is the primary device that accountants use to record increases or decreases in the
assets, liabilities or owners? equity portion of a business?s basic accounting equation? -
CORRECT ANSWER Account
A restaurant owner who takes home steaks for grilling at a private party she is hosting
for her friends, without properly reflecting this in the restaurant's accounting records, is
violating the -CORRECT ANSWER Distinct Business Entity Principle.
A chef invests $40,000 of her own money, and $160,000 borrowed for a bank, to open
her new restaurant. What percentage of this chef's new operation was equity funded? -
CORRECT ANSWER 6.7%
Which is the formula a manager would use to calculate a return on investment (ROI)? -
CORRECT ANSWER Money earned on funds invested / Funds invested = ROI
One year ago, an individual invested $75,000 in a business and today that investment is
worth $100,000. What was this investor?s ROI for the year? -CORRECT ANSWER
33.3%
Which is the first monetary value listed on a hospitality business?s income statement? -
CORRECT ANSWER Revenue
ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS
|| ALREADY GRADED A+||ALREADY GRADED A+
The primary purpose of accounting is to report on an organization's? -CORRECT
ANSWER money and valuable property.
When does accounting for a business begin? -CORRECT ANSWER Before the
business opens
The best definition of an accountant is a person who -CORRECT ANSWER is skilled in
the recording and reporting of financial transactions.
Which governmental entity establishes standards, and then awards qualified individuals
the Certified Public Accountant (CPA) designation? -CORRECT ANSWER State
Which branch of accounting concerns itself with the independent verification of financial
records? -CORRECT ANSWER Auditing
Items owned by a business are referred to as -CORRECT ANSWER assets
Which is the primary concern of financial accounting? -CORRECT ANSWER Recording
financial transactions
Which is a question that could NOT be best CORRECT ANSWERed strictly on the
basis of accounting data? -CORRECT ANSWER Which current bartender should we
promote to Head Bartender?
Assets = Liabilities + Owners? Equity, is referred to as the -CORRECT ANSWER basic
accounting equation.
When properly used, accounting helps hospitality managers -CORRECT ANSWER
make better decisions.
A restaurant owner records his purchases of food and beverage as an expense when
they are purchased, and who does not record end of accounting period inventory values
is violating the -CORRECT ANSWER Matching Principle.
, Which is the accounting summary that presents the financial condition, or financial
health, of a business? -CORRECT ANSWER Balance Sheet
In the hospitality industry, a point of sale (POS) system is used to record -CORRECT
ANSWER guest sales, payments and other information.
Which portion of a hospitality business?s transaction and analysis process would most
often by undertaken by the business?s owner or general manager? -CORRECT
ANSWER Financial analysis
Which is the basic accounting equation that is applicable to every business? -
CORRECT ANSWER Assets = Liabilities + Owners' Equity
Which is the foundation of accurate financial reporting and analysis? -CORRECT
ANSWER Bookkeeping
In the hospitality industry, a property management system (PMS) is used to record -
CORRECT ANSWER customer transactions that take place at a hotel's front desk.
Which would be the first action to occur in a hospitality business?s transaction recording
and analysis process? -CORRECT ANSWER Guest purchase
What is the primary device that accountants use to record increases or decreases in the
assets, liabilities or owners? equity portion of a business?s basic accounting equation? -
CORRECT ANSWER Account
A restaurant owner who takes home steaks for grilling at a private party she is hosting
for her friends, without properly reflecting this in the restaurant's accounting records, is
violating the -CORRECT ANSWER Distinct Business Entity Principle.
A chef invests $40,000 of her own money, and $160,000 borrowed for a bank, to open
her new restaurant. What percentage of this chef's new operation was equity funded? -
CORRECT ANSWER 6.7%
Which is the formula a manager would use to calculate a return on investment (ROI)? -
CORRECT ANSWER Money earned on funds invested / Funds invested = ROI
One year ago, an individual invested $75,000 in a business and today that investment is
worth $100,000. What was this investor?s ROI for the year? -CORRECT ANSWER
33.3%
Which is the first monetary value listed on a hospitality business?s income statement? -
CORRECT ANSWER Revenue
