Test Bank for Accounting For Hospitality Managers with Answer Sheet Ahlei 5th Edition Raymond Cote CHAPTER 01: HOTEL REVENUE ACCOUNTING CHAPTER 01: HOTEL REVENUE ACCOUNTING

Test Bank for Accounting For Hospitality Managers with Answer Sheet Ahlei 5th Edition Raymond Cote CHAPTER 01: HOTEL REVENUE ACCOUNTING

CHAPTER 01: HOTEL REVENUE ACCOUNTING
1 The sale of food to guests in the lounge is recorded to:
food sales.
bar sales.
concierge sales.
other income.
2 Commissions from outside guest laundry services are
shown on the:
rooms department statement.
other operating department statement.
schedule of rentals and other income.
marketing department statement.
3 If net sales are $1,000, food cost is $300, and labor
cost is $200, gross profit:
is $1,000.
is $700.
is $500.
cannot be determined from the given information.
4 If an invoice is dated March 26 with terms of 6/15,
n/30 EOM, the last day the discount can be taken is:
April 15.
May 15.
June 15.
June 30.
5 Using the gross method to record invoices, a May 29
invoice for supplies inventory of $500 with a 2%
discount in 10 days is:
recorded as accounts payable of $500.
recorded as accounts payable of $490.
not recorded until it is paid.
recorded as cash discounts earned of $10.
6 Using the net method to record invoices, a May 29
invoice for supplies inventory of $500 with a 2%
discount in 10 days is:
recorded as accounts payable of $500.
recorded as accounts payable of $490.
not recorded until it is paid.
recorded as cash discounts earned of $10.
7 Under the revenue treatment of recording discounts,
which procedure is used to record the discount on an
invoice for food purchases of $300 with a 2% discount?
The discount is recorded to a Cash Discounts Earned
account.
The discount is recorded as a reduction of food cost.
The discount is recorded as an increase to sales
revenue.
The discount is not recorded