BUSINESS ACUMEN CERTIFICATION EXAM
Excessively high employee counts in the balance scorecard accounts could indicates: -
Answers -higher Guest Service and Lower GOP; because a lot of expenses decrial
GOP
The operating results shown on monthly summary profit and loss statement: - Answers -
changes balance sheet and cash flow statement. Because changes current asset and
cash.
An online discounted channel is called - Answers -opaque
A balanced scorecard normally has how many sections - Answers -4
Its true to say that TRevPar - Answers -includes room revenue
Excessively high staffing levels will elevate guest service ratings on the score card and
will decrease the score card rating of: - Answers -GOP
Profit decreases as revenue exceeds the break even point - Answers -False
Net ADR is always larger than ADR - Answers -False
A REVPar calculation takes into account all rooms available for sale plus rooms out of
order for cleaning and refurbishment: - Answers -True
An ADR index can be compared with - Answers -a hotels ADR goals, Competitors ADR,
Industry ADR averages
The metric guest per occupied room impacts food and beverage revenue - Answers -
True
Trend graphs show index results over time - Answers -True
If food and beverage revenue per seat was dropping what would you check? - Answers
-Guest comments, Market demand, meal period cover, check average, food to
beverage sales ratio
If restaurant dinner sales were increasing which of these metrics would be affected? -
Answers -TrevPAR, Check average, Cover counts, F&B Revenue
In terms of net profit a low occupancy index can be offset by a high REVPar index -
Answers -True
As fixed costs drop, GOP rises - Answers -False
A reasonable rooms departmental profit is between 70-80% - Answers -True
, When current liabilities exceed current assets the current ratio is positive - Answers -
False
When current assets exceed current liabilities there is positive working capital - Answers
-True
Which formula is the formula for the balance sheet - Answers -Assets= Liabilities and
Owners Equity
Which shows hotels current debt to vendors - Answers -Balance Sheet / Accounts
Payable
In most cases the least expensive channel reservations cost is - Answers -Direct call;
no discount or commission
If GOP is 30% what is total revenue - Answers -100% total revenue
Revenue/Income minus departmental expense and other direct costs equal - Answers -
GOP; Income Statement
For the purpose of cost, volume, profit break even analysis GOP is called - Answers -
Contribution Margin; becomes profit
Total room revenue divided by number of rooms sold equals: - Answers -ADR; not
RevPAR because RevPAR takes occupancy percentage into account
Where is this months profit registered on the balance sheet - Answers -retained
earnings
For property management team including revenue manager the key measurement of
business results is - Answers -Gross Operating Profit
If monthly depreciation expenses increase than income tax on profit would tend to -
Answers -decrease; the depreciation is when the value goes down
Where is the hotels GOP or House Profit is listed - Answers -summary income
statement (Profit and loss)
Which statement lists the amounts of accounts Receivable this month - Answers -cash
flow; collection of accounts receivable.
On which statement would you find payroll, wages and employee benefits for rooms
division - Answers -Departmental Income Statement
How is working capital calculated - Answers -Current Assets - current liabilities
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