True/False Questions. Circle either T for true or F for false:

1. Association master accounts in the guest ledger and credit-card accounts in the city ledger are similar in one important aspect: both represent accounts receivable in terms of legal, but not living, persons. T F

2. Every accounting entry requires equal debits and credits with the one exception: Reimbursement by the parent company (often a franchisor) for room rate charges incurred by guests using a Preferred Guest Program would be for something less than the full rack rate charged to the guest using the points. T F

3. Even hotels using a PMS (property management system) may have use for pencil-and-paper vouchers. T F

4. Taxes payable is the hotels obligation to pay the local or provincial/territorial government for taxes charged on guest folios, collected from the guests and not yet paid to the particular agency of government. T F

5. The typical guest owes the hotel (has a debit balance on the folio) at the time he or she checks out, but it is possible although not frequent that the hotel could owe the guest at departure (so theres a credit balance on the folio). T F

Multiple Choice Questions. Circle the one answer that best completes the thought:

6. Master accounts are:

1. sometimes called A accounts when they are part of a split-billing arrangement
2. reviewed by the interested parties at the end of the function (the hotels sales person and/or accountant) and the individuals responsible for the final payment (president, and/or treasurer and/or association executive)
3. frequently transferred to the city ledger for settlement by direct billing
4. rarely used by wholesalers with groups, but heavily used by single-entities at all-suite hotels
5. all of the above except d

7. Every single line on the folio represents two events although only one line is visible; which of the following is the event most frequently recorded on the folio?

1. Debit cash; credit accounts receivable
2. Debit accounts receivable; credit cash
3. Debit sales; credit accounts receivable
4. Debit accounts receivable; credit sales
5. None of the above because they all appear at about the same frequency

8. Which of the following items would NOT be handled by an allowance on the folio?

1. Settlement of a complaint
2. Error by the hotel in overcharging the room rate
3. Double-up, as when a new arrival joins a previously housed guest
4. Providing for a comp room to an association executive
5. None of the above; that is, each of the events would be handled by an allowance

9. A transfer can take place between:

1. one guest ledger account to another
2. the transient ledger and the city ledger
3. the city ledger and the transient ledger
4. one city ledger account to another
5. all of the above

10. Which of the following charges would appear on the guests, individual, personal front-office folio:

1. Restaurant charge paid with cash
2. Showroom charge paid with a MasterCard
3. Room rate and taxes from last nights stay
4. Bar tab paid by the organization for which the guest is a speaker
5. Both b and c

11. A sleeper is a:

1. guest who has slept in past the hotels check out time
2. guest who has slept in and missed their flight
3. guest who did not get a wake-up call from the hotel even though they had asked for one
4. room for which the guest paid in advance and just left the hotel without checking out. This room becomes a sleeper if it is not picked up by the front desk and checked out.
5. front desk clerk who continually sleeps in and is often late for work

12. At the hotel front desk you will find two kinds of ledgers. They are:

1. the city ledger and rooms ledger
2. the check out ledger and guest ledger
3. the transient ledger and city ledger
4. the night audit ledger and guest ledger
5. the night audit ledger and transient ledger

13. The term split billing applies to:

1. two guests staying in one room asking have separate folios.
2. a conference guest who has the room charge posted to the conference (part of his/her conference fee) and has a folio for incidentals
3. a business guest who requests one folio for items his company will pay for and a separate folio for bar charges, movies etc. that the company does not pay for
4. all of the above
5. there is no such thing as a split folio

14. There are three accepted methods of settling an account. They are:

1. cash, allowance and personal cheque
2. cash, allowance and travellers cheque
3. cash, direct bill and personal cheque
4. allowance, transfer and direct bill
5. cash, allowance and transfer

15. There are four exceptions where in each case the room rate is posted during the day rather than by the night auditor. They are:

1. day rate, sleeper, check out earlier than the booked number of nights and paid in advance guests
2. day rate, late check out, sleep-out and paid in advance guests
3. day rate, stay-over, late check out, check out earlier than the booked number of nights and paid in advance guests
4. day rate, late check out, check out earlier than the booked number of nights and paid in advance guests
5. day rate, late check out, check out earlier than the booked number of nights and payment with a personal cheque

Short Answer Question. Answer briefly using a short paragraph or exhibit as appropriate:

16. What would be the purpose for a cashiers well (pit or bucket) in a hotel that has no property management system? Why would a hotel that has a property management system in place also have a cashiers well (pit or bucket)?