CHIA CHIA Financial Analysis & Hotel Accounting 1

Question 1

What does GOP stand for in hotel financial reporting?

Accepted Answer

Gross Operating Profit

Answer

GOP (Gross Operating Profit) is the profit remaining after subtracting operating expenses from total revenue, before fixed charges.

Question 2

What does the Uniform System of Accounts for the Lodging Industry (USALI) standardize?

Accepted Answer

Hotel financial reporting formats

Answer

USALI provides a standardized framework for hotel financial reporting, enabling consistent comparison across properties.

Question 3

In hotel finance, what does EBITDA stand for?

Accepted Answer

Earnings Before Interest, Taxes, Depreciation, and Amortization

Answer

EBITDA strips out financing, accounting, and tax decisions to reveal a hotel's core operational profitability.

Question 4

Which financial statement shows a hotel's revenues and expenses over a specific time period?

Accepted Answer

Income Statement (Profit & Loss)

Answer

The Income Statement (P&L) summarizes revenues and expenses to show net profit or loss for a given period.

Question 5

What does 'flow-through' measure in hotel financial analysis?

Accepted Answer

The percentage of a revenue change that flows to GOP

Answer

Flow-through (also called drop-through) measures what proportion of incremental revenue reaches Gross Operating Profit.

CHIA - Certified in Hotel Industry Analytics Practice Test