Travel Agent Proficiency Test Final Review
Questions and Verified Answers
Fixed Expenses Correct Answer: costs that remain unchanged during a specific period despite changes in
the volume of business.
Variable Expenses Correct Answer: are costs that increase and decrease directly and proportionately with
changes in business volume.
Semi-Variable or Mixed Expenses Correct Answer: are costs that change in response to a change in
business volume, but they change by less than a proportional amount.
Income Statement Correct Answer: summarizes revenues earned and expenses incurred for a particular
period
Balance Sheet Correct Answer: it shows the financial position of a business at a particular time and may
compare it to the business's position at the same time of a previous year. This includes assets, liability and
equity
Suppliers receive payment in four ways Correct Answer: Directly from client
CC company
In the form of checks from agencies
Through ARC (Airline Reporting Corporation)
Agents Receive Payments in 3 Ways Correct Answer: Through ARC
By deducting commission prior to sending to supplier
By check from supplier
ARC (AIRLINE REPORTING CORP) Correct Answer: an organization owned by major airlines that
regulates the sale of airline tickets by appointing those who may sell them.
Accountable Documents Correct Answer: issues standardized numbered forms that serve as tickets, and it
operates a centralized system for processing sales.
,Area Bank Settlement Plan Correct Answer: the system set up by ARC through which participating
suppliers receive payments for sales by travel agencies
ARC Report Correct Answer: Each travel agency pays the ARC suppliers weekly by electronically filing a
mandatory report of sales
base fare Correct Answer: the fare shorn of all taxes
Escrow Account Correct Answer: An account held by a third party or a bank that holds on to funds until
all requirements are fulfilled for them to be released
overrides Correct Answer: bonus commissions to agencies that meet various sales goals or move clients to
the supplier's products
Income for Travel Agencies Correct Answer: Commission on sales of transportation, accommodation,
cruises, tours and other services
Override commissions
Fees and service charges
Markups on net charges
Cost Benefit Analysis Correct Answer: A tool entrepreneurs use to hold down expenses and ensure
profits (ex. Buying flowers or gifts for a client)
Consortium Correct Answer: which is an association of agencies that retain their independent identities
but pool their resources for certain purposes
Miscellaneous Charges Order (MCO) Correct Answer: It records deposits and full prepayments for
transportation, tour packages, supplemental charges, accommodations, or additional collections. A clear
description of the type of service for which it is issued must be indicated on the MCO.
Voucher Correct Answer: Any document used to confirm arrangements, identify clients, or indicate
payments made
Invoice Correct Answer: Indicates the amount due from a client and constitutes an implied contract
between the agency and the client for services rendered in exchange for payment
Receipt Correct Answer: Invoices that indicate an amount paid and the method of payment.
,ARC's Industry Handbook Correct Answer: lists the forms of payment accepted by specific airlines, and
CRSs indicate if a particular credit card payment is not acceptable to the airline being used.
Travel Agency Service Fee (TASF) program Correct Answer: allows agencies to accept credit card
purchases for non-ARC items, such as service charges, and to process them through the Area Bank
Settlement Plan for a 3.5 percent fee
Protocol with checks and travelers checks Correct Answer: Do not accept checks from anyone unless
they are trustworthy, or if you can hold on to the tickets until the check clears
Do not accept checks from someone else who is not the person booking
Do not accept checks that are over the amount that they are charged
Some agencies use a check verification service to ensure that the funds will clear, although it is not
necessary
Write clients name, proof of identity, address, phone number, Drivers License on the back of the check
Never accept pre signed travelers checks
Only accept travelers checks from reputable companies
Geography Correct Answer: The study of relationships between people and their environment
Physical Geography Correct Answer: Focuses on people and their patterns of settlement and activity
Travel Geography Correct Answer: Application of knowledge to travel, tourism and hospitality agency
Longitude Correct Answer: Horizontal Lines
Latitude Correct Answer: Vertical Lines (Lateral!)
prime meridian Correct Answer: through Greenwich, England and the 180 degree meridian through the
pacific ocean
Globe Correct Answer: Scale model of the earth
Cartography Correct Answer: Map Making
, Geographic Information System (GIS) Correct Answer: Can retrieve, record, analyze and manipulate
information gathered by satellites
Interactive Mapping Correct Answer: When a user asks for information and the computer guides the user
to the answer
Projection Correct Answer: Transfer of information from a round surface to a flat area
Great Circle Route Correct Answer: A phrase used by airlines to determine the shortest distance between
to destinations
Compass Rose Correct Answer: Symbol in the maps corner indicating the map's orientation
Key or Legend Correct Answer: Explains symbols on the map
Scale Correct Answer: Indicates maps distances and the actual distances on earth
24 Hour Clock Correct Answer: Eliminates am and pm distinction and has one number for each hour of
the day
International Date Line Correct Answer: 180 degrees from GMT
Local Time Correct Answer: Time at any particular place
Elapsed Time Traveled Correct Answer: How long it takes to get to a destination
Daylights Saving Correct Answer: The changing of the clocks to maximize daylight
Crust Correct Answer: The earth's outermost layer
Continents from Largest to Smallest Correct Answer: Asia, Africa, North America, South America,
Antarctica, Europe and Australia
The Ural Mountains Correct Answer: divide Europe and Asia
Coast, seacoast, shore Correct Answer: The edge of land that borders the ocean
Continental Shelf Correct Answer: The area where the land meets the sea. Countries who own the shelf
can regulate fishing, oil etc
Questions and Verified Answers
Fixed Expenses Correct Answer: costs that remain unchanged during a specific period despite changes in
the volume of business.
Variable Expenses Correct Answer: are costs that increase and decrease directly and proportionately with
changes in business volume.
Semi-Variable or Mixed Expenses Correct Answer: are costs that change in response to a change in
business volume, but they change by less than a proportional amount.
Income Statement Correct Answer: summarizes revenues earned and expenses incurred for a particular
period
Balance Sheet Correct Answer: it shows the financial position of a business at a particular time and may
compare it to the business's position at the same time of a previous year. This includes assets, liability and
equity
Suppliers receive payment in four ways Correct Answer: Directly from client
CC company
In the form of checks from agencies
Through ARC (Airline Reporting Corporation)
Agents Receive Payments in 3 Ways Correct Answer: Through ARC
By deducting commission prior to sending to supplier
By check from supplier
ARC (AIRLINE REPORTING CORP) Correct Answer: an organization owned by major airlines that
regulates the sale of airline tickets by appointing those who may sell them.
Accountable Documents Correct Answer: issues standardized numbered forms that serve as tickets, and it
operates a centralized system for processing sales.
,Area Bank Settlement Plan Correct Answer: the system set up by ARC through which participating
suppliers receive payments for sales by travel agencies
ARC Report Correct Answer: Each travel agency pays the ARC suppliers weekly by electronically filing a
mandatory report of sales
base fare Correct Answer: the fare shorn of all taxes
Escrow Account Correct Answer: An account held by a third party or a bank that holds on to funds until
all requirements are fulfilled for them to be released
overrides Correct Answer: bonus commissions to agencies that meet various sales goals or move clients to
the supplier's products
Income for Travel Agencies Correct Answer: Commission on sales of transportation, accommodation,
cruises, tours and other services
Override commissions
Fees and service charges
Markups on net charges
Cost Benefit Analysis Correct Answer: A tool entrepreneurs use to hold down expenses and ensure
profits (ex. Buying flowers or gifts for a client)
Consortium Correct Answer: which is an association of agencies that retain their independent identities
but pool their resources for certain purposes
Miscellaneous Charges Order (MCO) Correct Answer: It records deposits and full prepayments for
transportation, tour packages, supplemental charges, accommodations, or additional collections. A clear
description of the type of service for which it is issued must be indicated on the MCO.
Voucher Correct Answer: Any document used to confirm arrangements, identify clients, or indicate
payments made
Invoice Correct Answer: Indicates the amount due from a client and constitutes an implied contract
between the agency and the client for services rendered in exchange for payment
Receipt Correct Answer: Invoices that indicate an amount paid and the method of payment.
,ARC's Industry Handbook Correct Answer: lists the forms of payment accepted by specific airlines, and
CRSs indicate if a particular credit card payment is not acceptable to the airline being used.
Travel Agency Service Fee (TASF) program Correct Answer: allows agencies to accept credit card
purchases for non-ARC items, such as service charges, and to process them through the Area Bank
Settlement Plan for a 3.5 percent fee
Protocol with checks and travelers checks Correct Answer: Do not accept checks from anyone unless
they are trustworthy, or if you can hold on to the tickets until the check clears
Do not accept checks from someone else who is not the person booking
Do not accept checks that are over the amount that they are charged
Some agencies use a check verification service to ensure that the funds will clear, although it is not
necessary
Write clients name, proof of identity, address, phone number, Drivers License on the back of the check
Never accept pre signed travelers checks
Only accept travelers checks from reputable companies
Geography Correct Answer: The study of relationships between people and their environment
Physical Geography Correct Answer: Focuses on people and their patterns of settlement and activity
Travel Geography Correct Answer: Application of knowledge to travel, tourism and hospitality agency
Longitude Correct Answer: Horizontal Lines
Latitude Correct Answer: Vertical Lines (Lateral!)
prime meridian Correct Answer: through Greenwich, England and the 180 degree meridian through the
pacific ocean
Globe Correct Answer: Scale model of the earth
Cartography Correct Answer: Map Making
, Geographic Information System (GIS) Correct Answer: Can retrieve, record, analyze and manipulate
information gathered by satellites
Interactive Mapping Correct Answer: When a user asks for information and the computer guides the user
to the answer
Projection Correct Answer: Transfer of information from a round surface to a flat area
Great Circle Route Correct Answer: A phrase used by airlines to determine the shortest distance between
to destinations
Compass Rose Correct Answer: Symbol in the maps corner indicating the map's orientation
Key or Legend Correct Answer: Explains symbols on the map
Scale Correct Answer: Indicates maps distances and the actual distances on earth
24 Hour Clock Correct Answer: Eliminates am and pm distinction and has one number for each hour of
the day
International Date Line Correct Answer: 180 degrees from GMT
Local Time Correct Answer: Time at any particular place
Elapsed Time Traveled Correct Answer: How long it takes to get to a destination
Daylights Saving Correct Answer: The changing of the clocks to maximize daylight
Crust Correct Answer: The earth's outermost layer
Continents from Largest to Smallest Correct Answer: Asia, Africa, North America, South America,
Antarctica, Europe and Australia
The Ural Mountains Correct Answer: divide Europe and Asia
Coast, seacoast, shore Correct Answer: The edge of land that borders the ocean
Continental Shelf Correct Answer: The area where the land meets the sea. Countries who own the shelf
can regulate fishing, oil etc
