TRAVEL CONSULTANT EXAM
QUESTIONS AND ANSWERS
Accountable Document - ANSWER-A standardized, numbered form issued by ARC
that the travel agency must account for.
ARC Report - ANSWER-A weekly accounting of a travel agency's sales of airline
tickets and other accountable documents also known as sales report or air report.
Area Bank Settlement Plan - ANSWER-The system by which airlines that are
members of ARC, Amtrak and certain other suppliers receive payments for tickets
sold by travel agency.
Base Fare - ANSWER-Airfare before taxes, fees, commissions, surcharges.
Cash Flow - ANSWER-The expenditures and income that determine the availability
of cash.
Consortium - ANSWER-An association of travel agencies that remain independent
but pool their resources for certain purposes, such as advertising and training.
Escrow Account - ANSWER-Funds or other property held by a third party, such as a
bank, until specified conditions are met for its release.
Income Statement - ANSWER-A financial statement summarizing revenues and
expenses for a certain period.
Invoice - ANSWER-A document that shows the amount a client owes.
Miscellaneous Charges Order (MCO) - ANSWER-An accountable document issued
by travel agencies when standard ticket stock cannot be used.
Receipt - ANSWER-An invoice that indicates an amount paid and the method of
payment.
Rent-a-Desk - ANSWER-A situation where an outside counselor works through a
travel agency and shares commission based on service provided by the agency.
Voucher - ANSWER-A document used to confirm arrangements, identify clients or
indicate payments made, issued by a tour operator, cruise line, or travel agency.
Rent (Fixed, Variable, Semivariable) - ANSWER-Fixed
Advertising (Fixed, Variable, Semivariable) - ANSWER-Semivariable
Commissions to outside salespersons and bonuses to employees (Fixed, Variable,
Semivariable) - ANSWER-Variable
, Salaries (Fixed, Variable, Semivariable) - ANSWER-Fixed
Telephone Services (Fixed, Variable, Semivariable) - ANSWER-Semivariable
Insurance (Fixed, Variable, Semivariable) - ANSWER-Fixed
Fixed Expenses - ANSWER-Costs that remain unchanged during a specific period
despite changes in the volume of business. Rent, insurance premiums, GDS
computer leases, salaries, subscriptions to reference books, industry magazines and
furniture.
Variable Expenses - ANSWER-Costs that increase and decrease directly and
proportionately with changes in business volume. Commissions to outside agents
and corporate dividends, for example, should increase when business is good and
decline when business is slow.
Semivariable or Mixed Expenses - ANSWER-Costs that change in response to a
change in business volume, but they change by less than a proportional amount.
Some part of the cost is fixed for a certain time, and another part changes with
volume. Semivariable expenses include electricity, telephone services, and
advertising.
A travel agency is owed $650 in hotel commissions and $4,000 from a group for a
deposit that you have forwarded to hold space on a cruise. Is the $4,650 listed on
your balance sheet under assets or liabilities? - ANSWER-Assets
Is the amount of equity or the amount of stock held by the owners of a company
listed on the balance sheet as an asset or a liability. - ANSWER-Liability
Is the financial position of a business at a particular time found on the income
statement or the balance sheet? - ANSWER-Balance Sheet
Is a summary of revenue and expenses over 3 months done on the income
statement or the balance sheet? - ANSWER-Income Statement
Besides wanting to avoid the need to pay immediately or to carry large amounts of
cash, what is another major reason that clients may wish to pay by credit card in
other countries? - ANSWER-To obtain a fair rate of exchange
You can accept a credit card from a stranger over the phone as long as you receive
an approval code through your computer or via phone. True or False? - ANSWER-
False - Person must sign in front of you or your could be held liable
You can accept a personal check from a stranger as long as he or she shows you a
picture ID and signs the check in front of you. True or False? - ANSWER-False -
Unless company policy allows - passport or other ID doesn't mean they have money
in the bank
QUESTIONS AND ANSWERS
Accountable Document - ANSWER-A standardized, numbered form issued by ARC
that the travel agency must account for.
ARC Report - ANSWER-A weekly accounting of a travel agency's sales of airline
tickets and other accountable documents also known as sales report or air report.
Area Bank Settlement Plan - ANSWER-The system by which airlines that are
members of ARC, Amtrak and certain other suppliers receive payments for tickets
sold by travel agency.
Base Fare - ANSWER-Airfare before taxes, fees, commissions, surcharges.
Cash Flow - ANSWER-The expenditures and income that determine the availability
of cash.
Consortium - ANSWER-An association of travel agencies that remain independent
but pool their resources for certain purposes, such as advertising and training.
Escrow Account - ANSWER-Funds or other property held by a third party, such as a
bank, until specified conditions are met for its release.
Income Statement - ANSWER-A financial statement summarizing revenues and
expenses for a certain period.
Invoice - ANSWER-A document that shows the amount a client owes.
Miscellaneous Charges Order (MCO) - ANSWER-An accountable document issued
by travel agencies when standard ticket stock cannot be used.
Receipt - ANSWER-An invoice that indicates an amount paid and the method of
payment.
Rent-a-Desk - ANSWER-A situation where an outside counselor works through a
travel agency and shares commission based on service provided by the agency.
Voucher - ANSWER-A document used to confirm arrangements, identify clients or
indicate payments made, issued by a tour operator, cruise line, or travel agency.
Rent (Fixed, Variable, Semivariable) - ANSWER-Fixed
Advertising (Fixed, Variable, Semivariable) - ANSWER-Semivariable
Commissions to outside salespersons and bonuses to employees (Fixed, Variable,
Semivariable) - ANSWER-Variable
, Salaries (Fixed, Variable, Semivariable) - ANSWER-Fixed
Telephone Services (Fixed, Variable, Semivariable) - ANSWER-Semivariable
Insurance (Fixed, Variable, Semivariable) - ANSWER-Fixed
Fixed Expenses - ANSWER-Costs that remain unchanged during a specific period
despite changes in the volume of business. Rent, insurance premiums, GDS
computer leases, salaries, subscriptions to reference books, industry magazines and
furniture.
Variable Expenses - ANSWER-Costs that increase and decrease directly and
proportionately with changes in business volume. Commissions to outside agents
and corporate dividends, for example, should increase when business is good and
decline when business is slow.
Semivariable or Mixed Expenses - ANSWER-Costs that change in response to a
change in business volume, but they change by less than a proportional amount.
Some part of the cost is fixed for a certain time, and another part changes with
volume. Semivariable expenses include electricity, telephone services, and
advertising.
A travel agency is owed $650 in hotel commissions and $4,000 from a group for a
deposit that you have forwarded to hold space on a cruise. Is the $4,650 listed on
your balance sheet under assets or liabilities? - ANSWER-Assets
Is the amount of equity or the amount of stock held by the owners of a company
listed on the balance sheet as an asset or a liability. - ANSWER-Liability
Is the financial position of a business at a particular time found on the income
statement or the balance sheet? - ANSWER-Balance Sheet
Is a summary of revenue and expenses over 3 months done on the income
statement or the balance sheet? - ANSWER-Income Statement
Besides wanting to avoid the need to pay immediately or to carry large amounts of
cash, what is another major reason that clients may wish to pay by credit card in
other countries? - ANSWER-To obtain a fair rate of exchange
You can accept a credit card from a stranger over the phone as long as you receive
an approval code through your computer or via phone. True or False? - ANSWER-
False - Person must sign in front of you or your could be held liable
You can accept a personal check from a stranger as long as he or she shows you a
picture ID and signs the check in front of you. True or False? - ANSWER-False -
Unless company policy allows - passport or other ID doesn't mean they have money
in the bank
