problem: Which of the following events would be recorded as an accounting event?
a) A guest purchases a meal in a food outlet.
b) A guest enters the dining room and is seated by a host.
c) A valet parks a guest's vehicle.
d) A guest complains to front office representatives about a dirty guestroom.
problem: What happens to the fundamental accounting equation when the sole proprietor of a business invests more cash in it?
a) Assets increase, liabilities increase, and owner's equity decreases.
b) Assets increase, liabilities increase, and owner's equity remains the same.
c) Assets increase, liabilities remain the same, and owner's equity increases.
d) Assets remain the same, liabilities increase, and owner's equity increases.
problem: The branch of accounting that involves reviewing and evaluating documents, records, and control systems is called:
a) Financial accounting.
b) Cost accounting.
d) Managerial accounting.
problem: Which of the following groups has the most influence over the development of accounting principles in the private sector?
a) Financial Accounting Standards Board (FASB)
b) Securities and Exchange Commission (SEC)
c) Hospitality Financial and Technology Professionals (HFTP)
d) Internal Revenue Service (IRS)
problem: The organization that administers the certification programs for Certified Hotel Account Executives and Certified Hotel Technology Professionals is:
a) The Internal Revenue Service (IRS).
b) The Securities and Exchange Commission (SEC).
c) Hospitality Financial and Technology Professionals (HFTP).
d) The Financial Accounting Standards Board (FASB).
problem: The major disadvantage of the corporate form of business organization is:
a) Limited liability.
b) Double taxation.
c) Difficulty in raising capital.
d) All of the above.
problem: Regardless of the size of an operation's accounting department, the diversity of its responsibilities, or the number and types of reports produced, the accounting staff is responsible for providing:
a) Clean rooms that is ready for sale.
c) Guest comment cards.
d) Inventory counts.
problem: The generally accepted accounting principle of matching requires that:
a) Hospitality businesses use the cash basis of accounting.
b) Expenses are matched with the revenues they generate.
c) Accounting adjustments are made at least quarterly.
d) Balance sheet accounts and income statement accounts match.
problem: The Tech Hotel purchased a computer for $3,000. The retail value of the computer per the salesperson is $3,500; however, it is projected that the computer will have a market value of only $2,500 one year from now. The cost principle dictates that the computer purchase be recorded at the date of purchase for:
d) Cannot be determined.
problem: Which of the following statements best describes the accounting principle of objective evidence?
a) It involves recording, classifying, and summarizing transactions in order to prepare reports.
b) It requires supporting documents for accounting transactions whenever possible.
c) It requires that all events that would make a difference to the user of a financial report be accounted for.
d) It assumes that the business will survive for the foreseeable future.