17 Cards in this Set
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Which of the following statements about ratio analysis are true?
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As part of a loan agreement, creditors may require hospitality business to maintain specific ratio standards
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Ratios are particularly useful to managers as indicators of:
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How well operational goals are being achieved
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Creditors typically use ratio analysis to evaluate the ____ of a business
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Solvency
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Which of the following statements about liquidity ratios is true?
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Owners and suppliers prefer a short accounts collection period for accounts receibable
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Multiple Occupancy Percentage
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Numbers of rooms sold with more than 1 person/ number of rooms sold
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RevPar is the combination of
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Paid occupancy percentage and average daily rate
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Financing for cash flow main focuses are
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Dividends
Stock
Debt
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The sum of all activities shown on the XYZ Hotels statement of Cash Flows for 20X2 was the positive $10,000 means:
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The hotels cash increased during 20x2
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Which of the following statements about the statement of cash flows is false
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The statement of cash flows classifies all cash receipts and cash disbursements as either operating activities or financing activities
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The statement of cash flows classifies all cash receipts and cash disbursements as either operating activities or financing activities
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Ignored because it does not provide or use cash
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A fixed asset that cost $10,000 and has a net book value of $5000 is sold for a loss of $2000. The statement of cash flows would reflect:
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A source of $3000
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Which of the following is not a revenue expenditure:
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Purchase of equipment
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A truck costing $30,000 is purchased on July 20X1. The firm uses the DDB method for the depreciation purposes. The truck has a five year life and a salvage value of $2000. What is the depreciation expense for 20x1?
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$6000
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A security Deposit paid by a firm for telecommunication purposes should be classified as an:
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Other asset
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DDB Method Double Declining Balance
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Annual Depreciation: undeprciated cost X (2/n)
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SYD Method Sum of years digits
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(cost-sv) (RL/Sum of years)
Sum of years is # of years
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Straight Line Method
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Annual Depreciation= (
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HB 302: EXAM 1 TERMS