Things Ya'll Should Know
Industry-wide guest no-show rate:
a. 8%
b. 20%
c. 1%
d. 0%
8%
Statement that expresses line items as % of revenue:
a. Common size income statement
b. Comparative income statement
c. Statement of cash flows
d. Summary operating statement
a. Common size income statement
Front office manager tells housekeeping to deliver feather-free pillows. What communication is this?
a. Horizontal communication
b. Grapevine communication
c. Vertical communication
d. None of the above
a. Horizontal communication
Which of the following is NOT a consequence of “walking” a guest due to overbooking?
a. Financial costs
b. Public relations issues
c. Increased guest satisfaction
d. None of the above
D! None of the above!
The (1) ________ shows performance over a period, while (2) ________ shows financial position at the end.
a. Cash flows → Balance sheet
b. Balance sheet → Income statement
c. Income statement → Balance sheet
d. Income statement → Cash flows
c. Income statement → Balance sheet
What is the fundamental purpose of the Sarbanes-Oxley Act?
a. Reward innovation in accounting
b. Standardize accounting procedures
c. Standardize bookkeeping procedures
d. Penalize fraudulent accounting practices
d. Penalize fraudulent accounting practices
Front office accounting = summarizing financial activity & standing of hotel.
a. True
b. False
true
Reporting to only ONE boss for a task is called:
a. Span of control
b. Unity of command
c. Programmed decision
d. Non-programmed decision
b. Unity of command
The rate charged to AAA members is an example of a:
a. Seasonal rate
b. Negotiated rate
c. Rack rate
d. Special event rate
b. Negotiated rate
In a hotel franchise relationship, the hotel brand/chain company is the franchisee, and the hotel owner is the franchisor.
a. True
b. False
FALSE
Which item is NOT typically included in a hotel franchise agreement?
a. Responsibilities of the franchisor and franchisee
b. Insurance requirements
c. Detailed definitions of terms to prevent misinterpretation
d. Future predictions about the brand/franchisor
d. Future predictions about the brand/franchisor
In the balance sheet, reserve for bad debts is subtracted from which account?
a. Accounts Receivable
b. Accounts Payable
c. Accumulated Depreciation
d. Owners’ Equity
a. Accounts Receivable
Vertical communication occurs at the same organizational level.
a. True
b. False
FALSE
What is always true when a hotel has a RevPAR index above 100?
a. ADR is lower than competitors
b. ADR is higher than competitors
c. Hotel is underperforming
d. Hotel is outperforming market
d. Hotel is outperforming market
A STAR report occupancy index compares a hotel’s occupancy % to:
a. City-wide occupancy average
b. Selected competitors’ average (voluntary)
c. Prior month’s occupancy
d. National occupancy average
b. Selected competitors’ average (voluntary)
Which of the following is NOT a direct responsibility of the General Manager (GM)?
a. Monitor operational standards set by the brand
b. Communicate with franchise officials about marketing & sales programs
c. Improve hotel profitability using brand-offered programs
d. Seek newer brands and franchises to replace current ones
d. Seek newer brands and franchises to replace current ones
Who usually takes the lead in preparing the income statement in a hotel?
a. Revenue manager
b. Executive housekeeper
c. Controller
d. Front office manager
Answer: c. Controller
An infrequent decision requiring creative decision-making ability is referred to as ________.
a. Programmed decisions
b. Non-programmed decision-making
c. Out-of-the-ordinary decision-making
d. None of the above
b. Non-programmed decision-making
A fade rate is MOST likely used when:
a. Rate resistance is encountered
b. No resistance is encountered
c. Room supply equals demand
d. Demand exceeds supply
a. Rate resistance is encountered
Which operating budget is useful for scheduling capital expenditures?
a. Long-range budgets
b. Annual budgets
c. Monthly budgets
d. Weekly budgets
a. Long-range budgets
Hotel has 500 rooms. ADR = $80. RevPAR = $70. What is occupancy %?
a. 60%
b. 87.5%
c. 40%
d. 75%
b. 87.5%
Accounting procedure created specifically for the lodging industry by hospitality accountants and AH&LA’s Educational Institute is referred to as:
a. GAAP
b. USALI
c. Sarbanes-Oxley (SOX) Act of 2002
d. None of the above
b. USALI
In which one of the following decision-making continuums does the manager make decisions after considering inputs from others?
a. Traditional
b. Contemporary
c. Recent
d. None of the above
b. Contemporary
How much commission do travel agents typically receive?
a. 25–50%
b. 0–5%
c. 5–20%
d. 50–75%
c. 5–20%
200-room hotel — rooms LEFT to sell:
• Friday: 80
• Saturday: 15
• Sunday: 120
Which day should be MLOS or CTA to MAXIMIZE WEEKEND occupancy?
a. Friday
b. Sunday
c. Saturday
d. None of the above
C. Saturday