Hospitality Accounting Quiz

Trade discount is :

• Allowed at the time of making payment.

• Allowed at the time of sale of goods.

• Both a & b.

• None of the above.

The trial balance is;

• is a listing of all the general ledger account balances at a particular date.

• is a listing of all assets and expenses at a particular date.

• is a summarizing of all revenues and expenses at a particular date.

• is a summarizing of cash inflows and cash outflows.

Long term liabilities is;

• Debenture c. Creditors

• Bills payable d. outstanding expenses

Calculation of depreciation by straight line method is also known as;

• Original cost method c. a & b both

• WDV method d. None of the above

Balance sheet is also known as;

• Cash position c. financial position

• Profit and Loss A/C. d. None of the above

If liabilities are $ 200,000 and equity is $ 125,000 then assets are;

• $ 75,000 c. $ 325,000

• $ 200,000 d. None of the above

Land & building were purchased by a restaurant for $ 375,000 then down payment was $ 175,000 and the balance was financed by a mortgage. What amount will be recorded as mortgage payable?

• $ 375,000 c. $ 200,000

• $ 550,000 d. $ 175,000

If sales is Rs. 300,000, Cost of goods sold is Rs. 225,000 then Gross profit margin is;

• 20% c. 30%

• 25% d. 40%

If Net income is $ 140,000 and tax rate is 30% then what will be the IBIT?

• $ 200,000 c. Rs. 200,000

• $ 182,000 d. Rs. 182,000

If sales is $ 300,000 and VC ratio is 60%, what will be the contribution margin in dollars?

• $ 12,000 c. $ 180,000

• $ 120,000 d. None of the above