Hotel Accounting Procedures! Trivia Questions Quiz

14 Questions | Total Attempts: 430

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Hotel Accounting Procedures! Trivia Questions Quiz

Are you conversant with hotel accounting procedures? The hotel industry rakes in millions a year, and this means that they need to keep proper books of accounting if they are to pay the right amount of taxes. As an accountant, take this trivia and refresh your understanding of these books of accounts and how to ensure they are correct.


Questions and Answers
  • 1. 
    In the double-entry system value received is thought of like a debit, and value given is thought of as a credit.
    • A. 

      True

    • B. 

      False

  • 2. 
    The general rule is that assets and expenditure have credit balances, and liabilities and income have debit balances.
    • A. 

      True

    • B. 

      False

  • 3. 
    The Profit and Loss Account is a statement that is prepared in order to show the financial position of a business.
    • A. 

      True

    • B. 

      False

  • 4. 
    When goods are bought on credit from a supplier, the value received is in the form of purchases (goods for resale) and value is given by a supplier.
    • A. 

      True

    • B. 

      False

  • 5. 
    When assets are bought on credit they are treated exactly the same as purchases.
    • A. 

      True

    • B. 

      False

  • 6. 
    Bank statements and bank accounts are records of the same set of transactions and should, therefore, agree.
    • A. 

      True

    • B. 

      False

  • 7. 
    There are two main types of discounts that are encountered in business:
    • A. 

      Trade discounts

    • B. 

      Debit discounts

    • C. 

      Cash discounts

  • 8. 
    In the Trading Account the net profit is calculated by subtracting the net expenses from other income after gross profit.
    • A. 

      True

    • B. 

      False

  • 9. 
    When interpreting accounts there are three main areas to be considered:
    • A. 

      Measures of profitability

    • B. 

      Measures which affect profitability

    • C. 

      Measures which affect liquidity

    • D. 

      Measurements of liquidity

  • 10. 
    There are many different approaches to learning the techniques of ______ entry bookkeeping.
    • A. 

      Single

    • B. 

      Double

  • 11. 
    Expenditure on fixed assets is called ______ expenditure. 
    • A. 

      Asset

    • B. 

      Credit

    • C. 

      Capital

    • D. 

      Debit

  • 12. 
    The accuracy of the recording can now be tested by preparing a sales ______ control account. 
    • A. 

      Ledger

    • B. 

      Profit

    • C. 

      Trading

  • 13. 
    If there are many small transactions, then the Cash Book can be simplified by the use of a ______ Cash Book.
    • A. 

      Day

    • B. 

      Sales

    • C. 

      Trading

    • D. 

      Petty

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