Hmgt 2100 final exam New Update Actual Test with complete solution

Why is Budgeting important? - Answer-Anticipate and prepare for future financial conditions Provide estimates of future revenues and expenses Help determine future room rates and other pricing structures Estimate financial returns on investments encourage managers to establish their own operating objectives, evaluation techniques and tools Help GM, Controller, and department heads self-evaluate financial progress controller - Answer-The individual responsible for recording, classifying, and summarizing a hotel's business transactions Different Types of operating budgets - Answer-Long-range, annual, monthly seasonal hotel - Answer-A hotel whose revenue and expenditures vary greatly depending on the time of the year. How does an hotel practice income control - Answer-Sales, cash, allowances and adjustments, and Account Receivable Manager's Daily - Answer-a re-cap of the previous day's room, food and beverage, and the other sales. May also include additional hotel oerationg statisitcs as requested by the hotel's genteral manger room allowance and adjustment % - Answer-Total monthly allowances and adjustments --------------------------------(divided by) total room revenue Account Recoverable - Answer-Money owed to the hotel because of sales made on creditAccounts receivable aging report - Answer-a process for determining the average length of time money is owed to a hotel because of a credit sale. write-off - Answer-A guest's direct bill that is considered uncollectible by management and as a result is subtracted for the hotel's accounts receivable total Account Payable - Answer-The sum total of all invoices owed by the hotel to its vendors for credit purchases made by the hotel Income Statement - Answer-Records the hotel's operating results for a specific time period. Also known as Profit and loss statement what does an Income statement tell - Answer-1. How will did the hotel perform during the time period 2. How well did the hotel perform compared to its estimate? 3. how well did the hotel perform compared to the same period last month, quarter, or year? 4. where did any significant financial changes from the previous time period occur. Balance sheet - Answer-Captures the overall financial position of a hotel at a specific point in time. Also a "Snapshot" of the hotel's financial health on a given date. Does NOT reflect how profitable the hotel's performance is. Statement of Cash Flows - Answer-tells you "how much cash was provided by the hotel's operation during the accounting period?" safety - Answer-protection of an individual's physical well-being and health security - Answer-protection of an individual's or business's property and other assets reasonable care - Answer-a legal concept identifying the amount of care a reasonable prudent person would exercise in a specific situation duty to care - Answer-hotel operators owe this to individuals who enter their establishment.Damages - Answer-the actual amount of losses or costs incurred due to the wrongful act of a liable party compensatory damages - Answer-a monetary amount intended to compensate injured parties for actual losses or damage they have incurred. This typically includes items such as medical bills and lost wages. AKA "actual damages" Punitive Damages - Answer-a monetary amount assessed to punishes liable parties and to serve as an example to the liable party as well as others not to commit the wrongful act act in the future.