CH 1: Hospitality Industry Accounting
Exam questions 2026 Exam Questions
and verified Answers
Before you get started, when does accounting for a business begin? - CORRECT ANSWERS
Before the business opens
The primary purpose of accounting is to report an organizations __________? - CORRECT ANSWERS
money and valuable property
Branches of accounting - CORRECT ANSWERS financial - record financial transactions
cost - identify and control costs
tax - compute taxes due
auditing - verify accounting data and procedures
managerial - make management decisions using accounting info
what is prime cost - CORRECT ANSWERS the two things that you can control
- cost of goods and labor
When properly used, accounting helps hospitality managers ____________________? - CORRECT
ANSWERS make better decisions
This is a question that could NOT be best answered strictly based on accounting data - CORRECT
ANSWERS which current server should be promoted to management
BEST definition of accountant - CORRECT ANSWERS a person who is skilled in the recording
and reporting of financial transactions
, PURPOSE of accounting in the hospitality industry - CORRECT ANSWERS - Banks want to
know about the proposed business estimated financial performance to decide to lend money
- Owners of a hospitality facility want to monitor their businesses financial decision and condition
- Investors want to put their money in businesses that will conserve or increase wealth.
* accounting is NOT the same as management; accounting is a tool used by good managers *
When is the primary concern of financial accounting? - CORRECT ANSWERS recording
financial transactions
items owned by a business are referred to as? - CORRECT ANSWERS assets
Which branch of accounting concerns itself with the independent verification of financial records? -
CORRECT ANSWERS auditing
What are the different certifications? - CORRECT ANSWERS
Which governmental entity establishes standards and then awards qualified individuals the CPA
designation? - CORRECT ANSWERS State
Which would be the greatest industry related challenge to managers who do NOT have an
understanding of accounting in the hospitality industry - CORRECT ANSWERS they LACK
specialized knowledge
The formula used to calculate a contribution margin is: - CORRECT ANSWERS (selling price -
product cost)
Exam questions 2026 Exam Questions
and verified Answers
Before you get started, when does accounting for a business begin? - CORRECT ANSWERS
Before the business opens
The primary purpose of accounting is to report an organizations __________? - CORRECT ANSWERS
money and valuable property
Branches of accounting - CORRECT ANSWERS financial - record financial transactions
cost - identify and control costs
tax - compute taxes due
auditing - verify accounting data and procedures
managerial - make management decisions using accounting info
what is prime cost - CORRECT ANSWERS the two things that you can control
- cost of goods and labor
When properly used, accounting helps hospitality managers ____________________? - CORRECT
ANSWERS make better decisions
This is a question that could NOT be best answered strictly based on accounting data - CORRECT
ANSWERS which current server should be promoted to management
BEST definition of accountant - CORRECT ANSWERS a person who is skilled in the recording
and reporting of financial transactions
, PURPOSE of accounting in the hospitality industry - CORRECT ANSWERS - Banks want to
know about the proposed business estimated financial performance to decide to lend money
- Owners of a hospitality facility want to monitor their businesses financial decision and condition
- Investors want to put their money in businesses that will conserve or increase wealth.
* accounting is NOT the same as management; accounting is a tool used by good managers *
When is the primary concern of financial accounting? - CORRECT ANSWERS recording
financial transactions
items owned by a business are referred to as? - CORRECT ANSWERS assets
Which branch of accounting concerns itself with the independent verification of financial records? -
CORRECT ANSWERS auditing
What are the different certifications? - CORRECT ANSWERS
Which governmental entity establishes standards and then awards qualified individuals the CPA
designation? - CORRECT ANSWERS State
Which would be the greatest industry related challenge to managers who do NOT have an
understanding of accounting in the hospitality industry - CORRECT ANSWERS they LACK
specialized knowledge
The formula used to calculate a contribution margin is: - CORRECT ANSWERS (selling price -
product cost)
