Deck 9: Movie Accounting

Question 1

Is the term 'Hollywood Accounting' a positive one?

Answer 1

No, it's code for creative interpretation of financial data with a negative connotation

Question 2

In film accounting, what are points?

Answer 2

Participation in profits

Question 3

What is gross film rental (also known as gross receipts)?

Answer 3

Distributor's share of total movie-ticket sales

Question 4

What is box office?

Question 5

Distributor expenses are also known as P&A, what does this stand for?

Question 6

Who has a more advantageous position - a gross participant or net participant in a film's profits?

Question 7

What does the gross participant have a percentage of revenue in?

Question 8

Film company accounting is complex for which reasons?

A) The average studio film has multiple revenue streams, remitted to the distributor from many different sources, over a long period of time.
B) A distribution company must report profits and losses to a number of different parties with different economic interests.
C) Movies always lose money
D) There are no standard definitions of certain terminology which causes confusion

Question 9

What are sources of TV revenue?

A) Foreign
B) Network TV
C) Pay Cable
D) Basic Cable
E) Syndicated

Question 10

The distributor charges a distribution fee on all of the gross receipts it receives. Amounts of these fees vary by:

A) Media
B) Length of the film
C) Rating of the film

Question 11

Contractual accounting is used for multiple films.

Question 12

Contractual accounting is the accounting between parties with a financial interest in a film based on a contract between the parties.

Question 13

Points are used as a bartering tool by a producer, as an incentive to attract talent.

Question 14

Distribution fees are also called P&A - prints and ads.

Question 15

Accounting data cannot be manipulated to increase or decrease profits.

Question 16

Profit points can be used as a bartering tool by a producer, as an incentive to attract talent.

Question 17

Revenue from TV, music and merchandising do not have to be accounted for, it's free money that a producer can just put straight into their pocket.

Question 18

The theater splits box office with the distributor.

Question 19

Describe the difference between corporate and contractual accounting.