CHAPTER 01: HOTEL REVENUE ACCOUNTING
1 The sale of food to guests in the lounge is recorded to:
food sales.
bar sales.
concierge sales.
other income.
2 Commissions from outside guest laundry services are
shown on the:
rooms department statement.
other operating department statement.
schedule of rentals and other income.
marketing department statement.
3 If net sales are $1,000, food cost is $300, and labor
cost is $200, gross profit:
is $1,000.
is $700.
is $500.
cannot be determined from the given information.
4 If an invoice is dated March 26 with terms of 6/15,
n/30 EOM, the last day the discount can be taken is:
April 15.
May 15.
June 15.
June 30.
5 Using the gross method to record invoices, a May 29
invoice for supplies inventory of $500 with a 2%
discount in 10 days is:
recorded as accounts payable of $500.
recorded as accounts payable of $490.
not recorded until it is paid.
recorded as cash discounts earned of $10.
6 Using the net method to record invoices, a May 29
invoice for supplies inventory of $500 with a 2%
discount in 10 days is:
recorded as accounts payable of $500.
recorded as accounts payable of $490.
not recorded until it is paid.
recorded as cash discounts earned of $10.
7 Under the revenue treatment of recording discounts,
, which procedure is used to record the discount on an
invoice for food purchases of $300 with a 2% discount?
The discount is recorded to a Cash Discounts Earned
account.
The discount is recorded as a reduction of food cost.
The discount is recorded as an increase to sales
revenue.
The discount is not recorded.
8 A registered guest is charging a meal at the hotel's
restaurant. The meal charge will be posted in the:
general ledger.
city ledger.
guest ledger.
daily rooms report.
9 An F&B customer who is not a registered guest is
charging a meal at the hotel's restaurant. The meal
charge will be posted in the:
general ledger.
city ledger.
guest ledger.
daily rooms report.
10 A registered guest is checking out and paying all
charges with a personal check. The payment is
recorded in the:
general ledger.
city ledger.
guest ledger.
daily rooms report.
, CHAPTER 02: HOTEL EXPENSE ACCOUNTING
1 Which of the following is not a financial reporting center
in a hospitality business?
Rooms department
Food and beverage department
Service bar
Utility costs
2 Which of the following is not classified as a support
center within a hospitality business?
Administrative and general
Telecommunications
Human resources
Information systems
3 Which of the following is not a direct expense properly
allocated to a particular department within a hospitality
business?
Cost of sales
Payroll
Operating supplies
Insurance
4 Which of the following is not an expense account
associated with the food and beverage department?
China, glassware, silver, and linen
Kitchen fuel
Credit card commissions
Menus
5 The wages for the accounts receivable clerk in the front
office are charged to the:
rooms department.
front office department.
accounting department.
marketing department.
6 If a hotel accepts MasterCard, Visa, and American
Express cards and if a guest uses one of these cards to
purchase food and beverages, the credit card fee will
be charged to the:
marketing department.
F&B department.
A&G department.
schedule of rentals and other income.
, 7 Water used in the F&B department is charged to the:
F&B department.
schedule of utility costs.
A&G department.
property operation and maintenance department.
8 When received from guests, nonbank credit card drafts
are:
treated the same as cash.
recorded as accounts receivable.
accounted for using the allowance method.
classified as uncollectable accounts.
9 Gas used to heat guestrooms is charged to the:
rooms department.
schedule of utility costs.
A&G department.
property operation and maintenance department.
10 The percentage of receivables (balance sheet)
procedure is used to estimate bad debts. The current
balance in the Allowance for Doubtful Accounts is $500
credit. An aging of the accounts receivable results in a
forecast of $1,700 potential bad debts. The adjustment
to the Allowance for Doubtful Accounts is:
$1,200 credit.
$1,200 debit.
$1,700 credit.
$1,700 debit.
1 The sale of food to guests in the lounge is recorded to:
food sales.
bar sales.
concierge sales.
other income.
2 Commissions from outside guest laundry services are
shown on the:
rooms department statement.
other operating department statement.
schedule of rentals and other income.
marketing department statement.
3 If net sales are $1,000, food cost is $300, and labor
cost is $200, gross profit:
is $1,000.
is $700.
is $500.
cannot be determined from the given information.
4 If an invoice is dated March 26 with terms of 6/15,
n/30 EOM, the last day the discount can be taken is:
April 15.
May 15.
June 15.
June 30.
5 Using the gross method to record invoices, a May 29
invoice for supplies inventory of $500 with a 2%
discount in 10 days is:
recorded as accounts payable of $500.
recorded as accounts payable of $490.
not recorded until it is paid.
recorded as cash discounts earned of $10.
6 Using the net method to record invoices, a May 29
invoice for supplies inventory of $500 with a 2%
discount in 10 days is:
recorded as accounts payable of $500.
recorded as accounts payable of $490.
not recorded until it is paid.
recorded as cash discounts earned of $10.
7 Under the revenue treatment of recording discounts,
, which procedure is used to record the discount on an
invoice for food purchases of $300 with a 2% discount?
The discount is recorded to a Cash Discounts Earned
account.
The discount is recorded as a reduction of food cost.
The discount is recorded as an increase to sales
revenue.
The discount is not recorded.
8 A registered guest is charging a meal at the hotel's
restaurant. The meal charge will be posted in the:
general ledger.
city ledger.
guest ledger.
daily rooms report.
9 An F&B customer who is not a registered guest is
charging a meal at the hotel's restaurant. The meal
charge will be posted in the:
general ledger.
city ledger.
guest ledger.
daily rooms report.
10 A registered guest is checking out and paying all
charges with a personal check. The payment is
recorded in the:
general ledger.
city ledger.
guest ledger.
daily rooms report.
, CHAPTER 02: HOTEL EXPENSE ACCOUNTING
1 Which of the following is not a financial reporting center
in a hospitality business?
Rooms department
Food and beverage department
Service bar
Utility costs
2 Which of the following is not classified as a support
center within a hospitality business?
Administrative and general
Telecommunications
Human resources
Information systems
3 Which of the following is not a direct expense properly
allocated to a particular department within a hospitality
business?
Cost of sales
Payroll
Operating supplies
Insurance
4 Which of the following is not an expense account
associated with the food and beverage department?
China, glassware, silver, and linen
Kitchen fuel
Credit card commissions
Menus
5 The wages for the accounts receivable clerk in the front
office are charged to the:
rooms department.
front office department.
accounting department.
marketing department.
6 If a hotel accepts MasterCard, Visa, and American
Express cards and if a guest uses one of these cards to
purchase food and beverages, the credit card fee will
be charged to the:
marketing department.
F&B department.
A&G department.
schedule of rentals and other income.
, 7 Water used in the F&B department is charged to the:
F&B department.
schedule of utility costs.
A&G department.
property operation and maintenance department.
8 When received from guests, nonbank credit card drafts
are:
treated the same as cash.
recorded as accounts receivable.
accounted for using the allowance method.
classified as uncollectable accounts.
9 Gas used to heat guestrooms is charged to the:
rooms department.
schedule of utility costs.
A&G department.
property operation and maintenance department.
10 The percentage of receivables (balance sheet)
procedure is used to estimate bad debts. The current
balance in the Allowance for Doubtful Accounts is $500
credit. An aging of the accounts receivable results in a
forecast of $1,700 potential bad debts. The adjustment
to the Allowance for Doubtful Accounts is:
$1,200 credit.
$1,200 debit.
$1,700 credit.
$1,700 debit.
