1. The double occupancy percentage of XYZ Hotel was 40%, and 1,400 guests stayed in the hotel. Assume two guests stayed in each double and one guest in each single. How many rooms were sold?

a. 600

b. 800

c. 1,000

d. 1,400

e. none of the above

2. Which of the following would generally prefer the lowest current ratio?

a. owners

b. management

c. creditors suppliers

d. creditors long-term

e. the IRS

3. Once ratios are computed, they generally are best compared to:

a. industry averages

b. the prior years ratios

c. ratios per the budget

d. a close competitors ratios

4. A hotel has a current ratio of 1.5, an acid test ratio of 1.2, and total current assets of $120,000. Its total quick assets equal:

a. $80,000

b. $96,000

c. $100,000

d. $120,000

5. The Wheeler Motel had a food inventory turnover of 24 times when its average food inventory is $4,000 and the cost of employee meals was $1,000. If cost of food sales % was 30%, what were total food sales?

a. $316,667

b. $320,000

c. $323,333

d. none of the above