Question 1

The night audit is prepared on a __________ basis.&#10;A) daily&#10;B) weekly&#10;C) bi-weekly&#10;D) monthly

Accepted Answer

The night audit is prepared on a daily basis in the hospitality industry to review and close a hotel's financial activities for the day.

Question 2

The front office manager uses the results of the night audit in which of the following way(s)?&#10;A) monitors credit activity of guests&#10;B) projects daily cash flow from room sales&#10;C) monitors projected and actual sales for the various departments&#10;D) all of the above

Accepted Answer

The front office manager uses the results of the night audit to monitor credit activity of guests, project daily cash flow from room sales, and monitor projected and actual sales for the various departments, making all of the options correct.

Question 3

Which of the following steps in the night audit process is out of order?&#10;A) Step 1 - Assembling guest charges and payments&#10;B) Step 2 - Reconciling departmental financial activities&#10;C) Step 3 - Reconciling the accounts receivable&#10;D) Step 4 - Running the trial balance&#10;E) Step 5 - Posting room and tax charges

Accepted Answer

Posting room and tax charges typically occurs before running the trial balance to ensure all charges are accounted for in the day's financial activities. This step is essential for accurate financial reporting and should precede the trial balance step, making its listed position out of order.

Question 4

If a hotel holds a credit balance on a guest folio, this means it owes a guest for future services.

Accepted Answer

A credit balance on a guest folio indicates that the hotel owes the guest money, not for future services, but because the guest has overpaid or has a credit for some reason (e.g., a refund or deposit).

Question 5

A trial balance helps the night auditor focus on accounts in which charges may have been posted or reported incorrectly.

Accepted Answer

A trial balance is used to ensure that the sum of debits equals the sum of credits, highlighting any discrepancies or errors in posting, which helps in identifying accounts with potential inaccuracies.

Question 6

The goal of preparing the night audit report is which of the following?&#10;A) to compare historical data&#10;B) to log data for future reference&#10;C) to react to the operational financial feedback to improve situations&#10;D) to use information for budgeting

Accepted Answer

The night audit report primarily serves to provide operational financial feedback, which management can then use to make improvements or adjustments in the hotel's operations. This process is crucial for maintaining financial health and ensuring the smooth running of the establishment.

Question 7

The cashier's report is composed of which of the following?&#10;A) cash&#10;B) credit cards&#10;C) PMS totals&#10;D) all of the above&#10;E) none of the above

Accepted Answer

The cashier's report typically includes all forms of payment processed, such as cash, credit cards, and Property Management System (PMS) totals, which track various transactions within a business.

Question 8

A manager's report contains occupancy statistics such as occupancy percentage, yield percentage, average daily rate, and RevPAR.

Accepted Answer

These are common metrics used in the hospitality industry to measure performance, with RevPAR standing for Revenue Per Available Room, which along with occupancy percentage, yield percentage, and average daily rate, helps managers understand their operations' financial health and efficiency.

Question 9

The daily flash report is a listing of departmental totals by day, period to date, and year to date.

Accepted Answer

A daily flash report indeed provides a snapshot of departmental totals by day, as well as cumulative figures for the current period and the year to date, offering a quick overview of financial performance.

Question 10

A manager's report contains less data than a night audit, but still is helpful to a general manager?

Accepted Answer

A manager's report typically summarizes key information and metrics relevant to daily operations, making it helpful for a general manager to quickly assess the business's performance, whereas a night audit provides a more detailed and comprehensive breakdown of daily financial transactions, guest accounts, and operational activities.

Question 11

The correct formula to balance a bank deposit is as follows?&#10;Total bank deposit&#10;- total cash sales&#10;+ credit card received A/R&#10;- cash received A/R&#10;_____________________&#10;= 0

Accepted Answer

The answer of The correct formula to balance a bank...

Question 12

400 rooms were sold on May 1 out of 500 rooms available. What is the occupancy percentage?&#10;A) 1.25&#10;B) 20&#10;C) 80&#10;D) 35

Accepted Answer

The answer of 400 rooms were sold on May 1...

Question 13

$45,345 room income was received on May 1. What was the average daily rate in &#9;question 12?&#10;A) $113.36&#10;B) $90.68&#10;C) $75.75&#10;D) none of the above

Accepted Answer

The answer of $45,345 room income was received on May...

Question 14

What is the RevPAR for the hotel in question 12?&#10;A) $113.36&#10;B) $90.68&#10;C) $85.25&#10;D) none of the above

Accepted Answer

The answer of What is the RevPAR for the hotel...

Deck 10: Preparation and Review of the Night Audit