Test Bank: Accounting Essentials for Hospitality Managers, 3e Chris Guilding
n n n n n n n n n
Test Bank to accompany
n n n
Accounting Essentials for Hospitality Managers
n n n n
Chapter 1: Introduction: Hospitality Decision Makers’ Use of Accounting
n n n n n n n n
1. Whichn ofn then followingn isn notn ann examplen ofn an sectorn thatn cann ben classifiedn withinn thenh
ospitalitynindustry?
A. Cruisenliners
B. Countrynandnsportsnclubs
C. Pubsnandnbars
D. Fast-foodnoutlets
E. Allnofnthenabovencannbenclassifiednwithinnthenhospitalitynindustry
2. Whichnofnthenfollowingnstatementsnisnnotntrue?
A. Designingnanlargenhotel’snorganisationalnstructurenandnaccountingnsystemnisncomplicat
ednbynthenneedntonco-
ordinatenanrangenofndisparatenfunctionsnthatntypicallynincludenthenprovisionnofnaccomm
odation,nrestaurantnandnbarnfacilities.
B. Hotelsncannbendistinguishednfromnmostnothernservicensectorsnasnthenlocationnofnthenservi
cenprovisionnisnalsonthenplacenwherenthencustomernpurchasesnandnconsumesnthenservices
noffered.
C. Highnfunctionalninterdependencynfacilitatesndepartmentalnaccountability.
D. Thennaturenofnmanagementndecisionnmakingninnconnectionnwithnsellingnroomsninnanhoteln
cannbenlikenedntonthensalenofnseatsninnthenairlinenornentertainmentnindustries.
E. Hotels’nhighnsalesnvolatilitynmakesnaccuratenbudgetingnmorenchallenging.
3. Whichnofnthenfollowingnisnnotnankeyncharacteristicnofnthenhotelnindustry?
A. Highnsalesnvolatility.
B. Highnproductnperishability.
C. Highnproportionnofnfixedncosts.
D. Highnproportionnofnlabournintensivenactivities.
E. Allnofnthenabovenarenkeyncharacteristicsnofnthenhotelnindustry
4. Whichn ofn then followingn isn notn an generallyn acknowledgedn salesn volatilityn challengen thatn isne
videntninnthenhotelnindustry?
A. Economicncyclenvolatility
B. Seasonalnsalesnvolatility
C. Staffnturnovernsalesnvolatility
D. Weeklynsalesnvolatility
E. Intra-daynsalesnvolatility
,5. Whichnofnthenfollowingnisnnotnantruenstatement?
A. Relativentonpurchasesninnmostnotherncommercialncontexts,ntherentendsntonbenanshortntimens
pannbetweennordernplacement,nproductionnandnsalenofnmanynitemsninnanrestaurantnkitche
n.
B. Anhighnproportionnofnanhotel’sncostsndonnotnvaryninnlinenwithnsalesnlevels.
C. Relativen ton mostn othern industries,n activitiesn conductedn inn then hoteln industryn aren notnl
abournintensive.
D. Achievingn standardisedn approachesn ton reportingn isn moren ofn an concernn inn financialn
accountingnthanninnmanagementnaccounting.
E. Managementnaccountingnisnlessnstandardisednthannfinancialnaccounting.
6. Whichnofnthenfollowingnstatementsnisnuntrue?
A. Anlacknofnconfidenceninnfinancialnaccountingnsystemsnwouldnlikelynmakenitnharderntonra
isendebtnandnequitynfunding.
B. Managementnaccountingnsystemsnarendesignedntonhelpnmanagersninntheirndecisionnmaki
ngnandncontrolnofnbusinesses.
C. GreaternusenofnthenUniformnSystemnofnAccountsnisnsignifyingnincreasednstandardisatio
nnofnhotelnaccountnclassificationnschemesnandnalsonfinancialnperformancenreportsnprodu
cednbynhotels.
D. Thenaccountingnsystemnisnonenofnseveralninformationnsystemsnthatnmonitornthenperform
ancenofnallndepartmentsnwithinnhotels.
E. Fornthensakenofnanhealthyneconomy,nitnisnimportantnthatnanreliablenfinancialnaccountingns
ystemnisnestablished.
7. Whichnofnthenfollowingnisnnotnantruenstatement?
A. Financialnaccountingnconcernsnthenpreparationnofnfinancialnreportsnfornexternalnusersnonn
anmonthlynbasis.
B. Managementnaccountingnconcernsnthenprovisionnofnfinancialnreportsntonmanagers.
C. Managementn accountingn reportsn cann ben producedn usingn non-
n standardisedn formatsnacrossncompanies.
D. Fornmostnorganisations,nthenaccountingnsystemncannbenseennasnthenmostnextensivenandna
llnencompassingninformationnsystem.
E. Anreducingnlevelnofnconfidenceninnfinancialnaccountingnsystemsnwouldntranslatenintonan
greaternreluctancenfornequitynprovidersntoninvestninncompanies.
8. Innthencontextnofnhotelnmanagement,nwhichnofnthenfollowingndoesnnotnrepresentnannexamplenofnh
ighnperishabilitynwithnrespectntonansalesnopportunity?
A. Anspecificnroomnnight.
B. Andeliverynofnstrawberries.
C. Andeliverynofnbottlednbeer.
D. Anlargenconferencenroomnfornanspecificnday.
E. Nonenofnthenabove,ntheynarenallnexamplesnofnproductsnornservicesnwithnhighnperishability.
,9. Whichnofnthenfollowingnisnnotnantruenstatement?
A. Comparedntonthenhotelnsector,nmostnbusinessnsectorsnexperiencenanrelativelynhighndegreen
ofneconomicncyclenrelatednsalesnvolatility.
B. Thenhotelnsectornisnsubjectntonhighnseasonalnsalesnvolatility.
C. Thenhotelnsectornisnsubjectntonhighnweeklynsalesnvolatility.
D. Thenhotelnsectornisnsubjectntonhighnintra-daynsalesnvolatility.
E. Salesnvolatilityncannbenexpectedntonbengreaterninntourismnhotelsnthanninnhotelsnlocatedninnc
entralnbusinessndistricts.
10. ThenUniformnSystemnofnAccounts:
A. representsnann“offnthenshelf”naccountingnsystemnthatncannbenadoptednbynanynbusinessninn
thenhotelnindustry.
B. isnansystemnthatncannbenviewednasn“statenofnthenart”nasnitnbenefitsnfromnthen accumulatedn
experiencenofnthenpartiesnthatnhavencontributedntonthensystem’sndevelopmentnovernman
ynyears.
C. promotesnconsistentnaccountnclassificationnschemesnasnwellnasnconsistentnpresentationn
ofnperformancenreportsnandnthereforenfacilitatesncomparisonnacrossnhotels.
D. representsnancommonnpointnofnreferencenfornhotelsnwithinnthensamenhotelngroup.
E. Allnofnthenabovenarentrue.
11. Whichnofnthenfollowingnstatementsnisnnotntrue:
A. Thenhospitalitynindustrynencompassesnannarrownrangenofnactivitiesnandntypesnofnorganis
ations.
B. Anlargenhotel’snorganisationalnstructurenandnaccountingnsystemnshouldnbendesignednwit
hnduenregardngivenntonco-
ordinatingnanrangenofnfunctionsnthatnwillnfrequentlynincludenthenprovisionnofnaccommod
ation,nrestaurantnandnbarnfacilities.
C. Thensalenofnanhotel’snroomsncannbenlikenedntonthensalenofnseatsninnthenairlinenindustry.
D. Anparallelnexistsnbetweennfoodnpreparationninnrestaurantnkitchensnandnproductionnactivi
tiesninnmanufacturingnorganisations.
E. Barnoperationsncannbenlikenedntonretailing.
12. Whichnofnthenfollowingnstatementsnisnnotntrue:
A. Thenuniformnsystemnofnaccountsnrepresentsnann“offnthenshelf”naccountingnsystemnthatnc
annbenadoptednbynanynbusinessninnthenhotelnindustry.
B. Thenuniformnsystemnofnaccountsnisnansystemnthatncannbenviewednasn“statenofnthenart”n asn
itnbenefitsnfromnthenaccumulatednexperiencenofnthenpartiesnthatnhavencontributedntonthen
system’sndevelopmentnovernmanyn years.
C. Thenuniformnsystemnofnaccountsnpromotesnconsistentnaccountnclassificationnschemesna
snwellnasnconsistentnpresentationnofnperformancenreportsnandnthereforenfacilitatesncomp
arisonnacrossnhotels.
D. Thenuniformnsystemnofnaccountsnsignifiesnthatnallnhotelsnshouldnusenthensamenmanagem
entnaccountingnsystem.
E. Thenuniformnsystemnofnaccountsnrepresentsnancommonnpointnofnreferencenfornhotelsnwit
hinnthensamenhotelngroup.
, 13. Whichnofnthenfollowingnisnnotnantruenstatement?
A. Financialnaccountingnconcernsnthenpreparationnofnfinancialnreportsnfornexternalnusersnsuchn
asnshareholders.
B. Anlacknofnconfidenceninnfinancialnaccountsnwouldnlikelynreduceninvestors’nwillingnessnt
onbuynshares.
C. Annimportantnrolenofnmanagementnaccountingnisntonhelpnancompanynthatnsellsnproducent
onanhotelndecidenwhethernitnisnsafentonextendncreditntonthenhotel. .
D. Budgetingncannbenviewednasnfallingnwithinnthenmanagementnaccountingnfunction.
E. Financialnaccountingnisnmorenstandardisednthannmanagementnaccounting.
14. Whichnofnthenfollowingnstatementsnisnnotntrue:
A. Thenhospitalitynindustrynencompassesnanbroadnrangenofnactivitiesnandntypesnofnorganisat
ions.
B. Anlargenhotel’snorganisationalnstructurenandnaccountingnsystemnshouldnbendesignednwit
hnduenregardngivenntonco-
ordinatingnanrangenofnfunctionsnthatnwillnfrequentlynincludenthenprovisionnofnaccommod
ation,nrestaurantnandnbarnfacilities.
C. Thensalenofnanhotel’snroomsncannbenlikenedntonthensalenofnseatsninnthenairlinenindustry.
D. Anparallelnexistsnbetweennfoodnpreparationninnrestaurantnkitchensnandnproductionnactivi
tiesninnmanufacturingnorganisations.
E. Barnoperationsncannbenlikenedntonschedulednbatchnproduction.
15. Whichnofnthenfollowingnstatementsnisnnotntrue:
A. Thenuniformnsystemnofnaccountsnisnextensivelynusednoutsidenthenhotelnindustry.
B. Thenuniformnsystemnofnaccountsnisnansystemnthatncannbenviewednasn“statenofnthenart”n asn
itnbenefitsnfromnthenaccumulatednexperiencenofnthenpartiesnthatnhavencontributedntonthen
system’sndevelopmentnovernmanyn years.
C. Thenuniformnsystemnofnaccountsnpromotesnconsistentnaccountnclassificationnschemesna
snwellnasnconsistentnpresentationnofnperformancenreportsnandnthereforenfacilitatesncomp
arisonnacrossnhotels.
D. Thenuniformnsystemnofnaccountsndoesnnotnsignifynthatnallnhotelsnshouldnusenthensamenm
anagementnaccountingnsystem.
E. Thenuniformnsystemnofnaccountsnrepresentsnancommonnpointnofnreferencenfornhotelsnwit
hinnthensamenhotelngroup.
16. Whichnofnthenfollowingnisnnotnantruenstatement?
A. Financialnaccountingnconcernsnthenpreparationnofnfinancialnreportsnfornexternalnusersnsuchn
asnshareholders.
B. Anlacknofnconfidenceninnfinancialnaccountsnwouldnlikelynreduceninvestors’nwillingnessnt
onbuynshares.
C. Managementnaccountingnconcernsnthenproductionnofnaccountingninformationnandnreport
snthatncannbenusedntonaidnmanagement’sndecisionnmakingnandnorganisationalncontrol.
D. Asnbudgetingninvolvesnfuturenprojections,nitnisnnotnviewednasnfallingnwithinnthenmanage
mentnaccountingnfunction.
E. Financialnaccountingnisnmorenstandardisednthannmanagementnaccounting.
n n n n n n n n n
Test Bank to accompany
n n n
Accounting Essentials for Hospitality Managers
n n n n
Chapter 1: Introduction: Hospitality Decision Makers’ Use of Accounting
n n n n n n n n
1. Whichn ofn then followingn isn notn ann examplen ofn an sectorn thatn cann ben classifiedn withinn thenh
ospitalitynindustry?
A. Cruisenliners
B. Countrynandnsportsnclubs
C. Pubsnandnbars
D. Fast-foodnoutlets
E. Allnofnthenabovencannbenclassifiednwithinnthenhospitalitynindustry
2. Whichnofnthenfollowingnstatementsnisnnotntrue?
A. Designingnanlargenhotel’snorganisationalnstructurenandnaccountingnsystemnisncomplicat
ednbynthenneedntonco-
ordinatenanrangenofndisparatenfunctionsnthatntypicallynincludenthenprovisionnofnaccomm
odation,nrestaurantnandnbarnfacilities.
B. Hotelsncannbendistinguishednfromnmostnothernservicensectorsnasnthenlocationnofnthenservi
cenprovisionnisnalsonthenplacenwherenthencustomernpurchasesnandnconsumesnthenservices
noffered.
C. Highnfunctionalninterdependencynfacilitatesndepartmentalnaccountability.
D. Thennaturenofnmanagementndecisionnmakingninnconnectionnwithnsellingnroomsninnanhoteln
cannbenlikenedntonthensalenofnseatsninnthenairlinenornentertainmentnindustries.
E. Hotels’nhighnsalesnvolatilitynmakesnaccuratenbudgetingnmorenchallenging.
3. Whichnofnthenfollowingnisnnotnankeyncharacteristicnofnthenhotelnindustry?
A. Highnsalesnvolatility.
B. Highnproductnperishability.
C. Highnproportionnofnfixedncosts.
D. Highnproportionnofnlabournintensivenactivities.
E. Allnofnthenabovenarenkeyncharacteristicsnofnthenhotelnindustry
4. Whichn ofn then followingn isn notn an generallyn acknowledgedn salesn volatilityn challengen thatn isne
videntninnthenhotelnindustry?
A. Economicncyclenvolatility
B. Seasonalnsalesnvolatility
C. Staffnturnovernsalesnvolatility
D. Weeklynsalesnvolatility
E. Intra-daynsalesnvolatility
,5. Whichnofnthenfollowingnisnnotnantruenstatement?
A. Relativentonpurchasesninnmostnotherncommercialncontexts,ntherentendsntonbenanshortntimens
pannbetweennordernplacement,nproductionnandnsalenofnmanynitemsninnanrestaurantnkitche
n.
B. Anhighnproportionnofnanhotel’sncostsndonnotnvaryninnlinenwithnsalesnlevels.
C. Relativen ton mostn othern industries,n activitiesn conductedn inn then hoteln industryn aren notnl
abournintensive.
D. Achievingn standardisedn approachesn ton reportingn isn moren ofn an concernn inn financialn
accountingnthanninnmanagementnaccounting.
E. Managementnaccountingnisnlessnstandardisednthannfinancialnaccounting.
6. Whichnofnthenfollowingnstatementsnisnuntrue?
A. Anlacknofnconfidenceninnfinancialnaccountingnsystemsnwouldnlikelynmakenitnharderntonra
isendebtnandnequitynfunding.
B. Managementnaccountingnsystemsnarendesignedntonhelpnmanagersninntheirndecisionnmaki
ngnandncontrolnofnbusinesses.
C. GreaternusenofnthenUniformnSystemnofnAccountsnisnsignifyingnincreasednstandardisatio
nnofnhotelnaccountnclassificationnschemesnandnalsonfinancialnperformancenreportsnprodu
cednbynhotels.
D. Thenaccountingnsystemnisnonenofnseveralninformationnsystemsnthatnmonitornthenperform
ancenofnallndepartmentsnwithinnhotels.
E. Fornthensakenofnanhealthyneconomy,nitnisnimportantnthatnanreliablenfinancialnaccountingns
ystemnisnestablished.
7. Whichnofnthenfollowingnisnnotnantruenstatement?
A. Financialnaccountingnconcernsnthenpreparationnofnfinancialnreportsnfornexternalnusersnonn
anmonthlynbasis.
B. Managementnaccountingnconcernsnthenprovisionnofnfinancialnreportsntonmanagers.
C. Managementn accountingn reportsn cann ben producedn usingn non-
n standardisedn formatsnacrossncompanies.
D. Fornmostnorganisations,nthenaccountingnsystemncannbenseennasnthenmostnextensivenandna
llnencompassingninformationnsystem.
E. Anreducingnlevelnofnconfidenceninnfinancialnaccountingnsystemsnwouldntranslatenintonan
greaternreluctancenfornequitynprovidersntoninvestninncompanies.
8. Innthencontextnofnhotelnmanagement,nwhichnofnthenfollowingndoesnnotnrepresentnannexamplenofnh
ighnperishabilitynwithnrespectntonansalesnopportunity?
A. Anspecificnroomnnight.
B. Andeliverynofnstrawberries.
C. Andeliverynofnbottlednbeer.
D. Anlargenconferencenroomnfornanspecificnday.
E. Nonenofnthenabove,ntheynarenallnexamplesnofnproductsnornservicesnwithnhighnperishability.
,9. Whichnofnthenfollowingnisnnotnantruenstatement?
A. Comparedntonthenhotelnsector,nmostnbusinessnsectorsnexperiencenanrelativelynhighndegreen
ofneconomicncyclenrelatednsalesnvolatility.
B. Thenhotelnsectornisnsubjectntonhighnseasonalnsalesnvolatility.
C. Thenhotelnsectornisnsubjectntonhighnweeklynsalesnvolatility.
D. Thenhotelnsectornisnsubjectntonhighnintra-daynsalesnvolatility.
E. Salesnvolatilityncannbenexpectedntonbengreaterninntourismnhotelsnthanninnhotelsnlocatedninnc
entralnbusinessndistricts.
10. ThenUniformnSystemnofnAccounts:
A. representsnann“offnthenshelf”naccountingnsystemnthatncannbenadoptednbynanynbusinessninn
thenhotelnindustry.
B. isnansystemnthatncannbenviewednasn“statenofnthenart”nasnitnbenefitsnfromnthen accumulatedn
experiencenofnthenpartiesnthatnhavencontributedntonthensystem’sndevelopmentnovernman
ynyears.
C. promotesnconsistentnaccountnclassificationnschemesnasnwellnasnconsistentnpresentationn
ofnperformancenreportsnandnthereforenfacilitatesncomparisonnacrossnhotels.
D. representsnancommonnpointnofnreferencenfornhotelsnwithinnthensamenhotelngroup.
E. Allnofnthenabovenarentrue.
11. Whichnofnthenfollowingnstatementsnisnnotntrue:
A. Thenhospitalitynindustrynencompassesnannarrownrangenofnactivitiesnandntypesnofnorganis
ations.
B. Anlargenhotel’snorganisationalnstructurenandnaccountingnsystemnshouldnbendesignednwit
hnduenregardngivenntonco-
ordinatingnanrangenofnfunctionsnthatnwillnfrequentlynincludenthenprovisionnofnaccommod
ation,nrestaurantnandnbarnfacilities.
C. Thensalenofnanhotel’snroomsncannbenlikenedntonthensalenofnseatsninnthenairlinenindustry.
D. Anparallelnexistsnbetweennfoodnpreparationninnrestaurantnkitchensnandnproductionnactivi
tiesninnmanufacturingnorganisations.
E. Barnoperationsncannbenlikenedntonretailing.
12. Whichnofnthenfollowingnstatementsnisnnotntrue:
A. Thenuniformnsystemnofnaccountsnrepresentsnann“offnthenshelf”naccountingnsystemnthatnc
annbenadoptednbynanynbusinessninnthenhotelnindustry.
B. Thenuniformnsystemnofnaccountsnisnansystemnthatncannbenviewednasn“statenofnthenart”n asn
itnbenefitsnfromnthenaccumulatednexperiencenofnthenpartiesnthatnhavencontributedntonthen
system’sndevelopmentnovernmanyn years.
C. Thenuniformnsystemnofnaccountsnpromotesnconsistentnaccountnclassificationnschemesna
snwellnasnconsistentnpresentationnofnperformancenreportsnandnthereforenfacilitatesncomp
arisonnacrossnhotels.
D. Thenuniformnsystemnofnaccountsnsignifiesnthatnallnhotelsnshouldnusenthensamenmanagem
entnaccountingnsystem.
E. Thenuniformnsystemnofnaccountsnrepresentsnancommonnpointnofnreferencenfornhotelsnwit
hinnthensamenhotelngroup.
, 13. Whichnofnthenfollowingnisnnotnantruenstatement?
A. Financialnaccountingnconcernsnthenpreparationnofnfinancialnreportsnfornexternalnusersnsuchn
asnshareholders.
B. Anlacknofnconfidenceninnfinancialnaccountsnwouldnlikelynreduceninvestors’nwillingnessnt
onbuynshares.
C. Annimportantnrolenofnmanagementnaccountingnisntonhelpnancompanynthatnsellsnproducent
onanhotelndecidenwhethernitnisnsafentonextendncreditntonthenhotel. .
D. Budgetingncannbenviewednasnfallingnwithinnthenmanagementnaccountingnfunction.
E. Financialnaccountingnisnmorenstandardisednthannmanagementnaccounting.
14. Whichnofnthenfollowingnstatementsnisnnotntrue:
A. Thenhospitalitynindustrynencompassesnanbroadnrangenofnactivitiesnandntypesnofnorganisat
ions.
B. Anlargenhotel’snorganisationalnstructurenandnaccountingnsystemnshouldnbendesignednwit
hnduenregardngivenntonco-
ordinatingnanrangenofnfunctionsnthatnwillnfrequentlynincludenthenprovisionnofnaccommod
ation,nrestaurantnandnbarnfacilities.
C. Thensalenofnanhotel’snroomsncannbenlikenedntonthensalenofnseatsninnthenairlinenindustry.
D. Anparallelnexistsnbetweennfoodnpreparationninnrestaurantnkitchensnandnproductionnactivi
tiesninnmanufacturingnorganisations.
E. Barnoperationsncannbenlikenedntonschedulednbatchnproduction.
15. Whichnofnthenfollowingnstatementsnisnnotntrue:
A. Thenuniformnsystemnofnaccountsnisnextensivelynusednoutsidenthenhotelnindustry.
B. Thenuniformnsystemnofnaccountsnisnansystemnthatncannbenviewednasn“statenofnthenart”n asn
itnbenefitsnfromnthenaccumulatednexperiencenofnthenpartiesnthatnhavencontributedntonthen
system’sndevelopmentnovernmanyn years.
C. Thenuniformnsystemnofnaccountsnpromotesnconsistentnaccountnclassificationnschemesna
snwellnasnconsistentnpresentationnofnperformancenreportsnandnthereforenfacilitatesncomp
arisonnacrossnhotels.
D. Thenuniformnsystemnofnaccountsndoesnnotnsignifynthatnallnhotelsnshouldnusenthensamenm
anagementnaccountingnsystem.
E. Thenuniformnsystemnofnaccountsnrepresentsnancommonnpointnofnreferencenfornhotelsnwit
hinnthensamenhotelngroup.
16. Whichnofnthenfollowingnisnnotnantruenstatement?
A. Financialnaccountingnconcernsnthenpreparationnofnfinancialnreportsnfornexternalnusersnsuchn
asnshareholders.
B. Anlacknofnconfidenceninnfinancialnaccountsnwouldnlikelynreduceninvestors’nwillingnessnt
onbuynshares.
C. Managementnaccountingnconcernsnthenproductionnofnaccountingninformationnandnreport
snthatncannbenusedntonaidnmanagement’sndecisionnmakingnandnorganisationalncontrol.
D. Asnbudgetingninvolvesnfuturenprojections,nitnisnnotnviewednasnfallingnwithinnthenmanage
mentnaccountingnfunction.
E. Financialnaccountingnisnmorenstandardisednthannmanagementnaccounting.
