Hotel Financial Terms Quiz! Trivia

1.

What is the financial goal of the hotel?
- A.
  
  Gross Operating Profit
- B.
  
  Departmental Profit
- C.
  
  Net Operating Income
- D.
  
  Undistributed Expenses
Correct Answer
A. Gross Operating Profit

Explanation
The financial goal of the hotel is to achieve a high Gross Operating Profit. This metric represents the total revenue generated by the hotel minus the cost of goods sold and other direct expenses. It indicates the hotel's ability to generate profits from its core operations and is a key indicator of its financial performance. A high Gross Operating Profit signifies that the hotel is effectively managing its expenses and maximizing revenue, leading to increased profitability.

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2.

________________ and _______________ are averages that can both be found using the following formula revenue/ statistics= average* Hint* one is Food and Beverage the other is Rooms Division

Correct Answer
ADR and Average Check

Explanation
ADR stands for Average Daily Rate, which is a metric used in the hospitality industry to calculate the average revenue earned per occupied room in a hotel. It is calculated by dividing the total room revenue by the number of occupied rooms.

Average Check, on the other hand, is a metric used in the food and beverage industry to calculate the average amount spent by a customer on a single visit. It is calculated by dividing the total revenue from food and beverage sales by the number of customers.

Both ADR and Average Check are averages that can be found using the formula revenue/statistics = average. However, ADR is specific to the Rooms Division, while Average Check is specific to Food and Beverage.

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3.

What time does the front desk close?
- A.
  
  10 PM
- B.
  
  6 PM
- C.
  
  11 PM
- D.
  
  All of the above
- E.
  
  None of the above
Correct Answer
E. None of the above

Explanation
The question asks for the closing time of the front desk, but none of the given options provide the correct closing time. Therefore, the correct answer is "None of the above".

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4.

Write the formula to find Flow Thru.

Correct Answer
GOP/ Revenue

Explanation
The formula to find Flow Thru is GOP/ Revenue. This formula calculates the flow through percentage by dividing the Gross Operating Profit (GOP) by the Revenue. Flow Thru is a measure of how efficiently a business is converting its revenue into profit. A higher flow thru percentage indicates that the business is able to control costs effectively and generate more profit from its revenue.

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5.

Net Operating Income is
- A.
  
  Revenue minus departmental expenses and fixed charges
- B.
  
  Revenue minus undistributed expenses
- C.
  
  Revenue minus undistributed expenses, departmental expenses and fixed charges
- D.
  
  Revenue plus departmental expenses and fixed charges
- E.
  
  Revenue plus undistributed expenses, departmental expenses and fixed charges
Correct Answer
C. Revenue minus undistributed expenses, departmental expenses and fixed charges

Explanation
Net Operating Income is the amount of revenue that remains after deducting all the expenses directly related to the operations of the business, including departmental expenses and fixed charges. Undistributed expenses are also subtracted from the revenue to calculate the Net Operating Income. This includes expenses that are not directly related to any specific department or division of the business. Therefore, the correct answer is "Revenue minus undistributed expenses, departmental expenses, and fixed charges."

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6.

Statement of Income is
- A.
  
  Detail statement of all revenues for a given period
- B.
  
  Financial detail of a given period
- C.
  
  Summary statement of all revenues for a given period
- D.
  
  Financial summary of a given period
- E.
  
  Summary of all expenses for a given period
Correct Answer
D. Financial summary of a given period

Explanation
The statement of income is a financial summary of a given period. It provides an overview of the financial performance of a company during a specific time frame, typically a month, quarter, or year. It includes details of the revenues generated by the company during that period, as well as any expenses incurred. The statement of income helps in assessing the profitability and financial health of the company by showing the net income or loss for the period.

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7.

Which is a synonym for Gross Operating Profit?
- A.
  
  Net Operating Income
- B.
  
  ADR
- C.
  
  RevPar
- D.
  
  House Profit
- E.
  
  Room Revenue
Correct Answer
D. House Profit

Explanation
House Profit is a synonym for Gross Operating Profit. It refers to the total operating profit generated by a business before deducting any expenses or taxes. This term is commonly used in the hospitality industry to measure the profitability of a hotel or resort. It includes all revenue generated from room rentals, food and beverage sales, and other operating activities. House Profit is an important metric for evaluating the financial performance and efficiency of a hotel's operations.

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8.

_____________________ expense does not have a correlating revenue.

Correct Answer
Undistributed

Explanation
Undistributed expense refers to expenses that cannot be directly allocated to a specific revenue-generating activity or department. These expenses are not directly linked to any particular revenue source and are therefore considered as undistributed. This means that they are not assigned to a specific cost center or revenue category. Instead, they are typically allocated across the organization or absorbed as part of the overall operational costs.

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Hotel Financial Terms Quiz! Trivia

What is the financial goal of the hotel?

________________ and _______________ are averages that can both be found using the following formula revenue/ statistics= average* Hint* one is Food and Beverage the other is Rooms Division

What time does the front desk close?

Write the formula to find Flow Thru.

Net Operating Income is

Statement of Income is

Which is a synonym for Gross Operating Profit?

_____________________ expense does not have a correlating revenue.

__ and _ are averages that can both be found using the following formula revenue/ statistics= average* Hint* one is Food and Beverage the other is Rooms Division