Hospitality Revenue Management FINAL
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1. The primary purpose of accounting is to report on an organization's?: mon-
ey and valuable property.
2. When does accounting for a business begin?: Before the business opens
3. The best definition of an accountant is a person who: is skilled in the recording
and reporting of financial transactions.
4. Which governmental entity establishes standards, and then awards quali-
fied individuals the Certified Public Accountant (CPA) designation?: State
5. Which branch of accounting concerns itself with the independent verifica-
tion of financial records?: Auditing
6. Items owned by a business are referred to as: assets
7. Which is the primary concern of financial accounting?: Recording financial
transactions
8. Which is a question that could NOT be best answered strictly on the basis
of accounting data?: Which current bartender should we promote to Head Bar-
tender?
9. Assets = Liabilities + Owners? Equity, is referred to as the: basic accounting
equation.
10. When properly used, accounting helps hospitality managers: make better
decisions.
11. A restaurant owner records his purchases of food and beverage as an
expense when they are purchased, and who does not record end of accounting
period inventory values is violating the: Matching Principle.
12. Which is the accounting summary that presents the financial condition, or
financial health, of a business?: Balance Sheet
13. In the hospitality industry, a point of sale (POS) system is used to record-
: guest sales, payments and other information.
14. Which portion of a hospitality business?s transaction and analysis
process would most often by undertaken by the business?s owner or general
manager?: Financial analysis
15. Which is the basic accounting equation that is applicable to every busi-
ness?: Assets = Liabilities + Owners' Equity
16. Which is the foundation of accurate financial reporting and analysis?: -
Bookkeeping
17. In the hospitality industry, a property management system (PMS) is used
to record: customer transactions that take place at a hotel's front desk.
18. Which would be the first action to occur in a hospitality business?s trans-
action recording and analysis process?: Guest purchase
1/7
, Hospitality Revenue Management FINAL
Study online at https://quizlet.com/_gvvqgb
19. What is the primary device that accountants use to record increases or
decreases in the assets, liabilities or owners? equity portion of a business?s
basic accounting equation?: Account
20. A restaurant owner who takes home steaks for grilling at a private party she
is hosting for her friends, without properly reflecting this in the restaurant's
accounting records, is violating the: Distinct Business Entity Principle.
21. A chef invests $40,000 of her own money, and $160,000 borrowed for a
bank, to open her new restaurant. What percentage of this chef's new opera-
tion was equity funded?: 6.7%
22. Which is the formula a manager would use to calculate a return on invest-
ment (ROI)?: Money earned on funds invested / Funds invested = ROI
23. One year ago, an individual invested $75,000 in a business and today that
investment is worth $100,000. What was this investor?s ROI for the year?: -
33.3%
24. Which is the first monetary value listed on a hospitality business?s income
statement?: Revenue
25. In a hospitality business, a cost center is best defined as a: unit or depart-
ment that generates costs, but no revenues or profits.
26. Which is an example of a restaurant creditor?: A milk supplier who bills the
restaurant once per month for the milk the supplier has delivered
27. Which is an example of a non-controllable cost?: Laundry equipment depre-
ciation
28. Which group will have the greatest interest in the success of a hospitality
business?: Owners
29. Which term describes the money personally invested in a business by the
business's owners?: Equity
30. Which is NOT a monetary value that would be listed on a business?s
balance sheet?: Revenue
31. Which statement about a business?s accounts receivable (AR) is true?: -
The amount of AR is identified on the balance sheet
32. Which approach to establishing the worth of a business assesses the
amount of money the business will likely earn for its owners?: Future value
approach
33. A business has assets of $1,000,000 and liabilities of $600,000. What is the
amount of owners? equity in this business?: $400,000
34. One limitation of a balance sheet is that it does not include information
about: the relative value of the employees of the business.
35. The two basic methods accountants use to display information on a bal-
ance sheet are the report format and the: account format
2/7
Study online at https://quizlet.com/_gvvqgb
1. The primary purpose of accounting is to report on an organization's?: mon-
ey and valuable property.
2. When does accounting for a business begin?: Before the business opens
3. The best definition of an accountant is a person who: is skilled in the recording
and reporting of financial transactions.
4. Which governmental entity establishes standards, and then awards quali-
fied individuals the Certified Public Accountant (CPA) designation?: State
5. Which branch of accounting concerns itself with the independent verifica-
tion of financial records?: Auditing
6. Items owned by a business are referred to as: assets
7. Which is the primary concern of financial accounting?: Recording financial
transactions
8. Which is a question that could NOT be best answered strictly on the basis
of accounting data?: Which current bartender should we promote to Head Bar-
tender?
9. Assets = Liabilities + Owners? Equity, is referred to as the: basic accounting
equation.
10. When properly used, accounting helps hospitality managers: make better
decisions.
11. A restaurant owner records his purchases of food and beverage as an
expense when they are purchased, and who does not record end of accounting
period inventory values is violating the: Matching Principle.
12. Which is the accounting summary that presents the financial condition, or
financial health, of a business?: Balance Sheet
13. In the hospitality industry, a point of sale (POS) system is used to record-
: guest sales, payments and other information.
14. Which portion of a hospitality business?s transaction and analysis
process would most often by undertaken by the business?s owner or general
manager?: Financial analysis
15. Which is the basic accounting equation that is applicable to every busi-
ness?: Assets = Liabilities + Owners' Equity
16. Which is the foundation of accurate financial reporting and analysis?: -
Bookkeeping
17. In the hospitality industry, a property management system (PMS) is used
to record: customer transactions that take place at a hotel's front desk.
18. Which would be the first action to occur in a hospitality business?s trans-
action recording and analysis process?: Guest purchase
1/7
, Hospitality Revenue Management FINAL
Study online at https://quizlet.com/_gvvqgb
19. What is the primary device that accountants use to record increases or
decreases in the assets, liabilities or owners? equity portion of a business?s
basic accounting equation?: Account
20. A restaurant owner who takes home steaks for grilling at a private party she
is hosting for her friends, without properly reflecting this in the restaurant's
accounting records, is violating the: Distinct Business Entity Principle.
21. A chef invests $40,000 of her own money, and $160,000 borrowed for a
bank, to open her new restaurant. What percentage of this chef's new opera-
tion was equity funded?: 6.7%
22. Which is the formula a manager would use to calculate a return on invest-
ment (ROI)?: Money earned on funds invested / Funds invested = ROI
23. One year ago, an individual invested $75,000 in a business and today that
investment is worth $100,000. What was this investor?s ROI for the year?: -
33.3%
24. Which is the first monetary value listed on a hospitality business?s income
statement?: Revenue
25. In a hospitality business, a cost center is best defined as a: unit or depart-
ment that generates costs, but no revenues or profits.
26. Which is an example of a restaurant creditor?: A milk supplier who bills the
restaurant once per month for the milk the supplier has delivered
27. Which is an example of a non-controllable cost?: Laundry equipment depre-
ciation
28. Which group will have the greatest interest in the success of a hospitality
business?: Owners
29. Which term describes the money personally invested in a business by the
business's owners?: Equity
30. Which is NOT a monetary value that would be listed on a business?s
balance sheet?: Revenue
31. Which statement about a business?s accounts receivable (AR) is true?: -
The amount of AR is identified on the balance sheet
32. Which approach to establishing the worth of a business assesses the
amount of money the business will likely earn for its owners?: Future value
approach
33. A business has assets of $1,000,000 and liabilities of $600,000. What is the
amount of owners? equity in this business?: $400,000
34. One limitation of a balance sheet is that it does not include information
about: the relative value of the employees of the business.
35. The two basic methods accountants use to display information on a bal-
ance sheet are the report format and the: account format
2/7
