HOSPITALITY REVENUE LATEST
MANAGEMENT FINAL
EXAM
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Which change recorded in the liabilities and owners? equity portion of a balance
sheet represents a source of funds? - ANSWER-Increase in accounts payable
Which change recorded in the liabilities and owners? equity portion of a balance
sheet represents a use of funds? - ANSWER-Decrease in accounts payable
A statement of cash flows is designed to report a business's - ANSWER-sources
and uses of cash.
A firm that is considered to be a going concern is one that - ANSWER-generates
enough cash to stay in business.
END OF
PAGE 1
, HOSPITALITY REVENUE LATEST
MANAGEMENT FINAL
EXAM
Which is a form of cash equivalents in a business? - ANSWER- Certificates of
deposits
A restaurant's balance sheet shows assets of $600,000, and liabilities of $200,000.
What is this restaurant's debt to equity ratio? - ANSWER-0.50 times
A restaurant achieved $150,000 in net income. The
restaurant's balance sheet shows assets of $600,000, and liabilities of $200,000.
What is this restaurant's return on equity ratio? - ANSWER-37.5%
Which type of ratio assesses how readily current assets could be converted to cash?
- ANSWER-Liquidity ratio
Which of the following groups generally do not like to see too much debt on a
company's balance sheet? - ANSWER-Lenders and creditors
END OF
PAGE 2
, HOSPITALITY REVENUE LATEST
MANAGEMENT FINAL
EXAM
Which is the formula used to calculate a ratio? - ANSWER- Part / Whole= Ratio
Which of the following is calculated as: Current Assets - Current Liabilities? -
ANSWER-Working capital
A hotel owner borrows $10,000 at 8% interest for one year. The owner re-invests
the money and achieves a 25% gain in that year. What was the dollar amount of the
surplus gain
achieved by this hotel owner's leveraging activity? - ANSWER-
$1,700
Which is NOT a proper way to express the ratio of "10 out of each 100"? -
ANSWER-10
Which is NOT a solvency-related ratio? - ANSWER-Operating cash flows to
current liabilities ratio
END OF
PAGE 3
, HOSPITALITY REVENUE LATEST
MANAGEMENT FINAL
EXAM
A hotel has 85 rooms with king beds and 125 rooms with double beds. What
percentage of the hotel's rooms have double beds? - ANSWER-59.5%
GOPPAR is best defined as a hotel's - ANSWER-revenue less management
controllable costs per available room.
In the hotel industry, package rate refers to a - ANSWER- group of hotel products
and services sold for one price.
In the short run, when room supply is held constant - ANSWER-a decrease in
demand for rooms typically leads to a decreased selling price.
What is the name of the rooms pricing structure in place when a hotel charges the
highest rates in an area because it offers the best product or service levels? -
ANSWER-Prestige pricing
END OF
PAGE 4
MANAGEMENT FINAL
EXAM
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Which change recorded in the liabilities and owners? equity portion of a balance
sheet represents a source of funds? - ANSWER-Increase in accounts payable
Which change recorded in the liabilities and owners? equity portion of a balance
sheet represents a use of funds? - ANSWER-Decrease in accounts payable
A statement of cash flows is designed to report a business's - ANSWER-sources
and uses of cash.
A firm that is considered to be a going concern is one that - ANSWER-generates
enough cash to stay in business.
END OF
PAGE 1
, HOSPITALITY REVENUE LATEST
MANAGEMENT FINAL
EXAM
Which is a form of cash equivalents in a business? - ANSWER- Certificates of
deposits
A restaurant's balance sheet shows assets of $600,000, and liabilities of $200,000.
What is this restaurant's debt to equity ratio? - ANSWER-0.50 times
A restaurant achieved $150,000 in net income. The
restaurant's balance sheet shows assets of $600,000, and liabilities of $200,000.
What is this restaurant's return on equity ratio? - ANSWER-37.5%
Which type of ratio assesses how readily current assets could be converted to cash?
- ANSWER-Liquidity ratio
Which of the following groups generally do not like to see too much debt on a
company's balance sheet? - ANSWER-Lenders and creditors
END OF
PAGE 2
, HOSPITALITY REVENUE LATEST
MANAGEMENT FINAL
EXAM
Which is the formula used to calculate a ratio? - ANSWER- Part / Whole= Ratio
Which of the following is calculated as: Current Assets - Current Liabilities? -
ANSWER-Working capital
A hotel owner borrows $10,000 at 8% interest for one year. The owner re-invests
the money and achieves a 25% gain in that year. What was the dollar amount of the
surplus gain
achieved by this hotel owner's leveraging activity? - ANSWER-
$1,700
Which is NOT a proper way to express the ratio of "10 out of each 100"? -
ANSWER-10
Which is NOT a solvency-related ratio? - ANSWER-Operating cash flows to
current liabilities ratio
END OF
PAGE 3
, HOSPITALITY REVENUE LATEST
MANAGEMENT FINAL
EXAM
A hotel has 85 rooms with king beds and 125 rooms with double beds. What
percentage of the hotel's rooms have double beds? - ANSWER-59.5%
GOPPAR is best defined as a hotel's - ANSWER-revenue less management
controllable costs per available room.
In the hotel industry, package rate refers to a - ANSWER- group of hotel products
and services sold for one price.
In the short run, when room supply is held constant - ANSWER-a decrease in
demand for rooms typically leads to a decreased selling price.
What is the name of the rooms pricing structure in place when a hotel charges the
highest rates in an area because it offers the best product or service levels? -
ANSWER-Prestige pricing
END OF
PAGE 4
