Deck 11: Maintaining and Improving the Revenue Control System

Question 1

The two major threats to revenue security in a food service operation are external threats and

A) collusion.
B) embezzlement
C) internal threats.
D) server-related threats.

Answer 1

C

Question 2

When developing a revenue control system, managers must ensure that documented product requests are equal to

A) guest charges.
B) sales deposits.
C) product issues.
D) total sales receipts.

Answer 2

C

Question 3

An operation experiences cashier shortages that average $50.00 per day. If the operation is open 360 days per year, what will be this operation's annual revenue loss due to cashier shortages?

A) $180
B) $1,800
C) $18,000
D) $180,000

Answer 3

C

Question 4

An operation's guests are least likely to walk, or skip, their bills when

A) the operation's guest check averages are low.
B) the operation's guest check averages are high.
C) they must pay for their food after receiving it.
D) they must pay for their food before receiving it.

Question 5

A quick-change artist is a guest who attempts to defraud a food service operation by

A) skipping a check.
B) confusing a cashier.
C) stealing food products.
D) falsifying vendor invoices.

Question 6

For what type of payment cards are usage fees so high that many operators do not accept them for the payment of guest bills?

A) E-wallet cards
B) Travel and Entertainment (T&E)
C) Debit cards
D) Credit cards

Question 7

With which type of payment card is a user's purchase amount automatically transferred from the user's bank account to the entity issuing the payment card?

A) Debit
B) Credit
C) Amex
D) Travel and Entertainment (T&E)

Question 8

Hand held payment card scanners help reduce the potential for payment card skimming because when such scanners are used

A) guests cannot skip their checks.
B) employees do not process guest charges.
C) payment card charges are processed faster.
D) guests never lose sight of their payment cards.

Question 9

What is the typical amount of card-related fees a food service operation will pay when it allows its guests to use payment cards to settle their bills?

A) 1-2% of the amount charged
B) 3-6% of the amount charged
C) 7-12% of the amount charged
D) 13-20% of the amount charged

Question 10

No food or beverage should be issued to any server unless the server first

A) completes a deposit slip.
B) records the sale in the POS system.
C) verbally requests the item from the kitchen or bar.
D) collects the amount of the sale from the guest being served.

Question 11

An open check is one that has been used to authorize product issues from the kitchen or bar,

A) but has not yet been filled.
B) but has been walked by a guest.
C) and its total due has been added to the operation's sales total.
D) and its total due has not yet been added to the operation's sales total.

Question 12

Managers bond their employees to insure against the possibility that

A) guests will steal.
B) employees will steal.
C) guests will walk (skip) their checks.
D) employees will quit without giving proper notice.

Question 13

A cashier begins a shift with $500 in a cash drawer. The POS records sales of $3,850.20 during the cashier's shift. The actual cash and other payment forms held in the drawer at the end of the cashier's shift equal $4,348.20. This cashier's drawer is

A) $2.00 over.
B) $2.00 short.
C) $502.00 over.
D) $502.00 short.

Question 14

What would be the effect on the cashier's cash drawer if a cashier collected full payment from a guest, and then added a coupon to the cash drawer while simultaneously removing sales revenue equal to the value of the coupon?

A) The drawer will be in balance
B) The drawer will be over by the value of the coupon
C) The drawer will be over by the value of the guest sale
D) The drawer will be short by the value of the guest sale

Question 15

What is the POS report that sets an operation's sales figure in a specific time period back to zero, to begin recording sales in a new time period?

A) X report
B) Y report
C) Z report
D) Transaction report

Question 16

A manager implements a policy that requires bartenders to record all drink sales prior to making drinks. What is the revenue control task this policy directly addresses?

A) Verification of sales receipts
B) Verification of guest charges
C) Verification of sales deposits
D) Verification of products issued

Question 17

At what step in the revenue security system must operations' record the value of the employee meals they serve?

A) Verification of sales receipts
B) Verification of guest charges
C) Verification of products issued
D) Verification of accounts receivable

Question 18

In a well-managed food service operation, total guest check-related revenue should equal guest check totals, as well as

A) tips only.
B) tips and taxes.
C) service charges only.
D) service charges and taxes.

Question 19

In a well-run food service operation, whose job is it to verify the deposit of daily sales revenue?

A) Hosts
B) Servers
C) Cashiers
D) Managers

Question 20

What is an activity that is a common form of embezzlement?

A) Theft of food products
B) Falsification of bank deposits
C) Excessive requests for time off
D) Overconsumption of employee meals

Question 21

The primary purpose of a bank reconciliation is to compare an operation's

A) sales records with the bank's acceptance records.
B) deposit records with the bank's acceptance records.
C) product issues records with the bank's acceptance records.
D) inventory valuation records with the bank's acceptance records.

Question 22

What is the term used to indicate the amounts of money owed to an operation by its guests, but which have not yet been collected from those guests?

A) Accounts payable
B) Accounts receivable
C) Unrecorded accounts
D) Uncollectable accounts

Question 23

What is a danger resulting from excessively high levels of accounts receivable in a food service operation?

A) The operation's sales will be over-reported
B) The operation's sales will be under-reported
C) The operation may experience operating cash overages
D) The operation may experience operating cash shortages

Question 24

In a banquet setting, where attending guests are sold drink coupons, the person selling the coupons

A) must be bonded.
B) cannot be bonded.
C) must be the same person servings the drinks.
D) must be different from the person servings the drinks.

Question 25

When should managers pay invoices submitted by their vendors?

A) When purchase orders are issued
B) When the invoices are submitted by vendors
C) When products are accepted by receiving staff
D) When the invoices are verified as legitimate

Question 26

In a well-designed revenue control system total guest charges will be equal to total sales receipts.

Question 27

Counterfeit money used by guests to pay their bills will be honored as legal currency by banks.

Question 28

The role of a merchant service provider (MSP) is to coordinate and manage an operation's payment card acceptance and funds collection.

Question 29

Typical payment card fees range from 10-15% of the total amount charged on the payment card.

Question 30

Skimming is a form of payment card fraud used by quick change artists.

Question 31

In a properly operating precheck/postcheck revenue control system, product issues should equal product sales.

Question 32

The purpose of bonding employees is to eliminate the possibility of collusion in a food service operation.

Question 33

In a properly operating revenue control system, no product should be issued from a kitchen or bar until a permanent record of the issue is made.

Question 34

Service charges collected by management should be excluded from an operation's reported daily guest check revenue.

Question 35

Embezzlement is a form of fraud most often practiced by an operation's vendors.