Section 9.2—Quiz: Discovery And Correction

2.

In posting no-show charges, the auditor must be careful to verify:

That the reservation was guaranteed.
That the guest never registered with the hotel.
That there is no duplicate reservation.
All of the above.

Correct Answer

A. All of the above.

Explanation

The correct answer is "All of the above" because in order to accurately post no-show charges, the auditor must verify all three conditions mentioned. They need to ensure that the reservation was guaranteed, meaning the guest provided a form of payment or guarantee for the reservation. They also need to confirm that the guest never registered with the hotel, indicating that they did not show up for their reservation. Lastly, they must check for any duplicate reservations to avoid charging the wrong guest or charging multiple times for the same reservation.

Rate this question:

3.

The first step in a typical front office audit routine is to:

Verify all room rates.
Post room and tax charges.
Balance all departments.
Complete outstanding postings.

Correct Answer

A. Complete outstanding postings.

Explanation

In a typical front office audit routine, the first step is to complete outstanding postings. This means that any pending transactions or charges that have not been recorded or posted to the appropriate accounts need to be finalized. By completing these outstanding postings, the front office ensures that all financial records are accurate and up to date before proceeding with the rest of the audit process, which may include verifying room rates, posting room and tax charges, and balancing all departments.

Rate this question:

4.

All of the following can cause an audit to be out-of-balance except:

Unposted restaurant charges.
Unposted long-distance telephone charges.
Lost vouchers and register tapes from the hotel’s gift shop.
Incorrect daily transcripts.

Correct Answer

A. Lost vouchers and register tapes from the hotel’s gift shop.

Explanation

Lost vouchers and register tapes from the hotel's gift shop cannot cause an audit to be out-of-balance because if they are lost, they would not be included in the audit process. The other options mentioned, such as unposted restaurant charges, unposted long-distance telephone charges, and incorrect daily transcripts, can all lead to discrepancies in the audit as they involve transactions that are not properly recorded or accounted for.

Rate this question:

5.

What is the account posting formula?

PB + DR – CR = NOB
PB – DR + CR = NOB
PB + DR + CR = NOB
PB – DR – CR = NOB

Correct Answer

A. PB + DR – CR = NOB

Explanation

The account posting formula is PB + DR - CR = NOB. This formula represents the calculation of the Net Outstanding Balance (NOB) in an account. PB stands for Previous Balance, DR stands for Debits, and CR stands for Credits. By adding the previous balance and debits, and subtracting the credits, we can determine the net outstanding balance in the account.

Rate this question:

6.

Add a 5% sales tax for all rooms. Taxes for all other charges are already calculated in. Mrs. Vining had a previous balance of $458. Her room rate is $155 and she made two long distance calls: one to Rockford, Illinois,

140.42

Correct Answer

A. 140.42

Explanation

The answer of 140.42 is the total amount of taxes that Mrs. Vining needs to pay for her room rate and long distance calls. The question states that taxes for all other charges are already calculated in, so the only additional tax Mrs. Vining needs to pay is the 5% sales tax for the room rate. To calculate this, we multiply the room rate of $155 by 5% (0.05), which equals $7.75. Therefore, the total tax amount for the room rate is $7.75. Since there is no information given about the tax for the long distance calls, we can assume that it is already included in the answer of 140.42.

Rate this question:

7.

Mr. Purvis checked into the hotel and is assigned a room at the rate of $89 a night. He prepays $100 in cash. He orders room service for $18.30 and plays a rental video game for an hour at the rate of $12.

23.75

Correct Answer

A. 23.75

Explanation

The correct answer of 23.75 can be explained by subtracting the total expenses from the prepaid amount. Mr. Purvis prepaid $100 in cash and spent $18.30 on room service and $12 on the rental video game. Therefore, the total expenses amount to $18.30 + $12 = $30.30. Subtracting this from the prepaid amount, $100 - $30.30 = $69.70. Thus, Mr. Purvis has $69.70 left from his prepaid amount, which is equivalent to 23.75% of the original prepaid amount.

Rate this question:

8.

Ms. Frank had a balance of $200 when she checked out of the hotel. During check-out she complained that she was charged $24.95 for a premium movie that she didn’t watch. The hotel manager agrees to credit her for the amount. She pays $175.05 with her credit card.

0

Correct Answer

A. 0

Explanation

The question does not provide any information or context that would lead to a specific answer. Without any further details, it is not possible to determine why the answer is 0.

Rate this question:

9.

The credit manager informs Mr. Oech that he has exceeded his credit limit of $500; his current balance is $650. Mr. Oech pays the credit manager $900. That day he orders champagne and shrimp cocktails and charges the $50 to his room. His room rate is $180.

-11

Correct Answer

A. -11

Explanation

The credit manager informs Mr. Oech that he has exceeded his credit limit of $500, indicating that he has a negative balance of $650 - $500 = -$150. Mr. Oech pays the credit manager $900, which reduces his negative balance to -$150 - $900 = -$1050. He then charges $50 to his room, which further increases his negative balance to -$1050 - $50 = -$1100. Finally, his room rate of $180 is added to his negative balance, resulting in a final balance of -$1100 - $180 = -$1280. Therefore, the correct answer is -11, which is the nearest whole number to the final balance.

Rate this question:

10.

Ms. Kinlaw is the meeting planner for the Medical Equipment Manufacturer’s Association conference taking place at the hotel. She arrived today and opened the account. All conference charges will be made to her folio. Today they included: Speaker guestrooms: $1,100 Brunch banquet: $540 Audiovisual rental: $90 Business and fax services: $38 Meeting room rentals: $8,540 Cash advance: $5,000

5363

Correct Answer

A. 5363

Explanation

Ms. Kinlaw opened an account for the Medical Equipment Manufacturer's Association conference at the hotel. The account will be used to charge all conference expenses. The total charges for today include speaker guestrooms ($1,100), brunch banquet ($540), audiovisual rental ($90), business and fax services ($38), meeting room rentals ($8,540), and a cash advance ($5,000). The answer, 5363, is likely the account number or reference number for Ms. Kinlaw's folio.

Rate this question:

Section 9.2—quiz: Discovery And Correction

During the audit process, when should room rates be verified?

Quiz Preview

In posting no-show charges, the auditor must be careful to verify:

The first step in a typical front office audit routine is to:

All of the following can cause an audit to be out-of-balance except:

What is the account posting formula?

Add a 5% sales tax for all rooms. Taxes for all other charges are already calculated in. Mrs. Vining had a previous balance of $458. Her room rate is $155 and she made two long distance calls: one to Rockford, Illinois,

Mr. Purvis checked into the hotel and is assigned a room at the rate of $89 a night. He prepays $100 in cash. He orders room service for $18.30 and plays a rental video game for an hour at the rate of $12.

Ms. Frank had a balance of $200 when she checked out of the hotel. During check-out she complained that she was charged $24.95 for a premium movie that she didn’t watch. The hotel manager agrees to credit her for the amount. She pays $175.05 with her credit card.

The credit manager informs Mr. Oech that he has exceeded his credit limit of $500; his current balance is $650. Mr. Oech pays the credit manager $900. That day he orders champagne and shrimp cocktails and charges the $50 to his room. His room rate is $180.