CHP Financial Management 2

Question 1

A hotel's GOP (Gross Operating Profit) is calculated by subtracting which expenses from total revenue?

Accepted Answer

Departmental expenses plus undistributed operating expenses

Answer

GOP is derived by subtracting both departmental expenses and undistributed operating expenses (administrative, sales, maintenance, utilities) from total revenue.

Question 2

Which financial ratio best measures a hotel's ability to pay short-term obligations?

Accepted Answer

Current ratio

Answer

The current ratio (current assets ÷ current liabilities) measures short-term liquidity and the ability to meet near-term financial obligations.

Question 3

A restaurant forecasts $50,000 in food sales and a 32% food cost. What is the projected food cost in dollars?

Accepted Answer

$16,000

Answer

$50,000 × 0.32 = $16,000 projected food cost.

Question 4

In hospitality accounting, 'RevPAR' stands for:

Accepted Answer

Revenue Per Available Room

Answer

RevPAR (Revenue Per Available Room) equals occupancy percentage multiplied by average daily rate, measuring overall room revenue performance.

Question 5

A hotel purchases $8,000 in supplies but only $5,500 worth is used during the accounting period. What is recorded as an expense?

Accepted Answer

$5,500

Answer

Only the $5,500 of supplies consumed is recognized as an expense; the remaining $2,500 stays on the balance sheet as a prepaid asset.

(CHP) Certified Hospitality Professional Practice Test

(CHP) Certified Hospitality Professional Practice Test

CHP Financial Management 2