Deck 10: Preparation and Review of the Night Audit

Question 1

The night audit is prepared on a __________ basis.

A) daily
B) weekly
C) bi-weekly
D) monthly

Answer 1

daily

Question 2

The front office manager uses the results of the night audit in which of the following way(s)?

A) monitors credit activity of guests
B) projects daily cash flow from room sales
C) monitors projected and actual sales for the various departments
D) all of the above

Answer 2

all of the above

Question 3

Which of the following steps in the night audit process is out of order?

A) Step 1 - Assembling guest charges and payments
B) Step 2 - Reconciling departmental financial activities
C) Step 3 - Reconciling the accounts receivable
D) Step 4 - Running the trial balance
E) Step 5 - Posting room and tax charges

Answer 3

Step 5 - Posting room and tax charges

Question 4

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

Question 5

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

Question 6

The goal of preparing the night audit report is which of the following?

A) to compare historical data
B) to log data for future reference
C) to react to the operational financial feedback to improve situations
D) to use information for budgeting

Question 7

The cashier's report is composed of which of the following?

A) cash
B) credit cards
C) PMS totals
D) all of the above
E) none of the above

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

400 rooms were sold on May 1 out of 500 rooms available. What is the occupancy percentage?

A) 1.25
B) 20
C) 80
D) 35

Question 13

$45,345 room income was received on May 1. What was the average daily rate in question 12?

A) $113.36
B) $90.68
C) $75.75
D) none of the above

Question 14

What is the RevPAR for the hotel in question 12?

A) $113.36
B) $90.68
C) $85.25
D) none of the above