Question 1

Is the term 'Hollywood Accounting' a positive one?

Accepted Answer

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

Question 2

In film accounting, what are points?

Accepted Answer

Participation in profits

Question 3

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

Accepted Answer

Distributor's share of total movie-ticket sales

Question 4

What is box office?

Accepted Answer

The answer of What is box office?...

Question 5

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

Accepted Answer

The answer of Distributor expenses are also known as P&A,...

Question 6

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

Accepted Answer

The answer of Who has a more advantageous position -...

Question 7

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

Accepted Answer

The answer of What does the gross participant have a...

Question 8

Film company accounting is complex for which reasons?

Accepted Answer

A) Film revenues come from various sources (box office, streaming, DVD sales, etc.) over many years, complicating accounting. B) Distribution companies must navigate the financial interests of producers, investors, and other stakeholders. D) The lack of standardized terminology in the film industry can lead to confusion and complexity in financial reporting and agreements.

Question 9

What are sources of TV revenue?

Accepted Answer

The answer of What are sources of TV revenue?
...

Question 10

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

Accepted Answer

Distribution fees can vary based on the media through which the film is distributed, as different platforms may have different associated costs and revenue-sharing models.

Question 11

Contractual accounting is used for multiple films.

Accepted Answer

The answer of 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.

Accepted Answer

Contractual accounting in the context of the film industry involves the financial transactions and agreements between parties who have a financial interest in a film, as defined by their contractual relationships. This includes the distribution of revenues according to the terms set out in contracts.

Question 13

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

Accepted Answer

Points are often used in the entertainment industry as a form of incentive or compensation, allowing creators, actors, or producers to receive a share of the profits from a project, thereby attracting and motivating talented individuals to contribute to the success of the project.

Question 14

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

Accepted Answer

The answer of Distribution fees are also called P&A -...

Question 15

Accounting data cannot be manipulated to increase or decrease profits.

Accepted Answer

Accounting data can be manipulated through practices such as creative accounting or earnings management, where companies adjust financial statements to present a more favorable financial position or performance, thereby affecting the reported profits.

Question 16

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

Accepted Answer

Profit points, also known as percentage points, are often used in the entertainment industry as a way to attract talent by giving them a share of the project's profits, acting as an incentive beyond their upfront payment.

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.

Accepted Answer

Revenue from TV, music, and merchandising must be accounted for as income and is subject to taxes and other financial obligations, such as royalties or profit sharing agreements.

Question 18

The theater splits box office with the distributor.

Accepted Answer

The theater typically splits the box office revenue with the distributor, with percentages varying based on the agreement between the two parties.

Question 19

Describe the difference between corporate and contractual accounting.

Accepted Answer

The answer of Describe the difference between corporate and contractual...

Quiz 9: Movie Accounting