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

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