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HOTEL Mock Exam Questions

Total questions: 50

Worksheet time: 12hrs 16mins

Name
Class
Date
1.

What is the opening stock figure in the annual Trading, Profit and Loss Account?

a)

Equal to the sales figure

b)

The value of stock on the first day of the 12 month period in question

c)

The value of the stock on the last day of the 12 month period

d)

Always the same as the cost of sales

2.

Which of the following are NOT examples of 'expenses' found within the Profit and Loss account?

a)

Business rates, Advertising Costs, Rent

b)

Electricity Charges, Motor Vehicle, Professional Charges

c)

Premises, Motor Vehicle Expenses, Fixtures and Fittings

d)

Drawings, Long-term Loan, Mortgage

3.

'Expenses' found within the Profit and Loss Account can also be referred to as:

a)

Current Assets and Cost of Sales

b)

Purchases and Overheads

c)

Current Liabilities and Working Capital

d)

Running Costs and Overheads

4.

Which of the following is NOT found within the Trading Profit and Loss Account?

a)

Opening Stock

b)

Gross Profit

c)

Mortgage

d)

Marketing costs

5.

Which of the following items from the Profit and Loss Account is also found within the Balance Sheet?

a)

Opening Stock

b)

Net Profit

c)

Sales

d)

Gross Profit

6.

The term 'Sales' may also be referred to as:

a)

Profit, Cost of Sales, Income

b)

Gross profit, Income, Stock

c)

Sundry Expenses, Revenue, Purchases

d)

Revenue, Income, Turnover

7.

What was the value of the Opening Stock for Hotel ABC as of 31st December 2013?

a)

£31,000

b)

£30,100

c)

£25,000

d)

£14,500

8.

As of 31st December 2013, what was the amount recorded under Salaries & Wages in the trial balance for Hotel ABC?

a)

£138,550

b)

£100,000

c)

£68,000

d)

£53,000

9.

What was the total of both debit and credit columns in the trial balance for Hotel ABC at the end of 2013?

a)

£530,500

b)

£1,061,000

c)

£350,000

d)

£60,000

10.

What is the Cost of Sales figure for Hotel ABC?

a)

£100 900

b)

£100 000

c)

£131 000

d)

£350 000

11.

What is the Gross Profit figure for Hotel ABC?

a)

£249 100

b)

£100 900

c)

£350 000

d)

£42 000

12.

What is the Gross Profit percentage figure for Hotel ABC?

a)

871.85%

b)

75.40%

c)

71.17%

d)

75.00%

13.

What is the total expenses figure for Hotel ABC?

a)

£201,600

b)

£207,100

c)

£191,300

d)

£193,550

14.

What is the Net Profit figure for Hotel ABC?

a)

£47,500

b)

£57,800

c)

£55,550

d)

£42,000

15.

What is the Net Profit percentage for Hotel ABC?

a)

12.00%

b)

1.2%

c)

12.10%

d)

0.12%

16.

Which of the following does NOT appear in the Balance Sheet?

a)

Net Profit

b)

Creditors

c)

Net Assets

d)

Motor Vehicle Expenses

17.

Which of the following are ALL examples of fixed assets?

a)

Premises, Machinery, Fixtures and Fittings

b)

Rent, Computer Equipment, Motor Vehicles

c)

Office Equipment, Stock, Capital

d)

Bank Overdraft, Long-Term Loans, Cash

18.

Which of the following is a current liability?

a)

Long-Term Loan

b)

Debtor

c)

Bank Overdraft

d)

Drawings

19.

How is Working Capital calculated?

a)

Fixed Assets + Current Assets

b)

Current Assets + Current Liabilities

c)

Current Assets - Current Liabilities + Net profit

d)

Current Assets - Current Liabilities

20.

Which two items in the Balance Sheet should 'balance'?

a)

Closing Capital and Working Capital

b)

Net Assets and Closing Capital

c)

Opening Capital and Closing Capital

d)

Drawings and Closing Capital

21.

What is the correct calculation for the Closing Capital figure in the 'Financed by' section of the Balance Sheet?

a)

Opening Capital + Net Profit - Drawings

b)

Working Capital + Net Profit - Drawings

c)

Opening Capital + Net Profit + Drawings

d)

Opening Capital - Net Profit - Drawings

22.

What is the total fixed assets figure for Hotel ABC?

a)

£104,000

b)

£93,000

c)

£95,000

d)

£11,000

23.

What is the total current asset figure for Hotel ABC?

a)

£53,000

b)

£11,900

c)

£95,000

d)

£52,500

24.

What is the working capital figure for Hotel ABC?

a)

£9,000

b)

£101,290

c)

£42,500

d)

£147,500

25.

What is the long-term liabilities figure for Hotel ABC?

a)

£104,000

b)

£52,500

c)

£42,500

d)

£60,000

26.

What is the net assets figure for Hotel ABC?

a)

£42,500

b)

£86,500

c)

£60,000

d)

£146,500

27.

What is the closing capital figure for Hotel ABC?

a)

£86,500

b)

£60,000

c)

£42,500

d)

£110,000

28.

What does the line on the BE graph in Question 25 represent?

a)

Fixed Cost line

b)

Total Cost line

c)

Variable Cost line

d)

Sales line

29.

What does the line on the BE graph in Question 26 illustrate?

a)

Fixed Cost line

b)

Total Cost line

c)

Variable Cost line

d)

Sales line

30.

What does the vertical axis on a break-even graph represent?

a)

The expected sales figure plus costs

b)

The expected number of customers or items sold

c)

The break-even point

d)

The margin of safety

31.

At the break-even point, which of the following statements is true?

a)

A high level of profit is made

b)

The business is failing

c)

No profit or loss is made

d)

The business is making a loss

32.

How is the Margin of Safety percentage calculated?

a)

(BEP - Sales) / Expected Number of Items * 100

b)

(BEP - Expected Number of Items) / Expected Number of Items * 100

c)

(Expected Number of Items - Sales) / Expected Number of Items * 100

d)

(Expected Number of Items - BEP) / Expected Number of Items * 100

33.

What is the Gross Profit for the MH Hotel as per the Forecast Profit Statement for Breakeven calculations?

a)

£451,500

b)

£348,500

c)

£189,000

d)

£254,000

34.

What is the Net Profit for the MH Hotel according to the provided data?

a)

£189,000

b)

£197,500

c)

£254,000

d)

£348,500

35.

According to the document, how many customers are expected for the MH Hotel?

a)

10,000

b)

1,000

c)

100,000

d)

5,000

36.

What is the contribution per item for The MH Hotel?

a)

£38.65

b)

£3865

c)

£3.865

d)

£38,650

37.

What is the breakeven point for The MH Hotel in terms of customers?

a)

4891 customers

b)

4890 customers

c)

489 customers

d)

48910 customers

38.

What is the Margin of Safety percentage for The MH Hotel?

a)

51.09%

b)

51%

c)

5.109%

d)

510.9%

39.

What is the Gross Profit percentage as shown in the financial statement?

a)

71.17%

b)

12.00%

c)

15.00%

d)

60.00%

40.

According to the financial statement, what is the total amount of Expenses?

a)

207,100

b)

249,100

c)

100,900

d)

42,000

41.

What is the Net Profit amount listed in the financial statement?

a)

42,000

b)

207,100

c)

100,900

d)

249,100

42.

Which of the following is the highest expense category in the financial statement?

a)

Salaries & Wages

b)

Motor Vehicle Expenses

c)

Insurance

d)

Advertising

43.

What is the total amount of Fixed Assets listed on the balance sheet for Hotel ABC as of 31.12.13?

a)

£104,000

b)

£95,000

c)

£146,500

d)

£86,500

44.

As of 31.12.13, what is the amount of Net Assets for Hotel ABC?

a)

£86,500

b)

£104,000

c)

£42,500

d)

£52,500

45.

What is the total amount of Current Liabilities for Hotel ABC as shown in the balance sheet dated 31.12.13?

a)

£52,500

b)

£95,000

c)

£42,500

d)

£60,000

46.

How much is the Closing Capital for Hotel ABC according to the balance sheet of 31.12.13?

a)

£86,500

b)

£68,000

c)

£110,000

d)

£23,500

47.

What is the Gross Profit of MN Hotel as listed in the document?

a)

$451,500

b)

$348,500

c)

$197,500

d)

$254,000

48.

How much are the Fixed Costs for MN Hotel?

a)

$189,000

b)

$65,000

c)

$254,000

d)

$197,500

49.

The Breakeven point for The MH Hotel is:

a)

4891 customers

b)

£4890

c)

4890.03 customers

d)

£4890.03        

50.

What is the Margin of Safety percentage calculated for MN Hotel?

a)

51.09%

b)

38.65%

c)

4,891

d)

4,890.04