BUSINESS ACUMEN CERTIFICATION EXAM
"In periods of high occupancy the decision to accept a large booking group should include - CORRECT
ANSWER=> displacement analysis: if group is taking up rooms other guests get displaced"
"Insurance and depreciation are examples of - CORRECT ANSWER=> Fixed Charges"
"Revenue management statistic that includes all revenue - CORRECT ANSWER=> TrevPAR"
"Payments to vendors are registered on which statement - CORRECT ANSWER=> Cash flow statement"
"A capital investment cost $ 1 million. Ownership requests as annual 10% ROI. If net profit is 20% how
much of an increase in annual revenue would be required to provide the additional profit needed for
10% ROI? - CORRECT ANSWER=> $500,000; 10% of 1 million=10,000=20% of 500,000"
"For the purpose of cost, volume, profit break even analysis GOP is called - CORRECT ANSWER=>
Contribution Margin; becomes profit"
"Total room revenue divided by number of rooms sold equals: - CORRECT ANSWER=> ADR; not RevPAR
because RevPAR takes occupancy percentage into account"
"Where is this months profit registered on the balance sheet - CORRECT ANSWER=> retained earnings"
"For property management team including revenue manager the key measurement of business results is
- CORRECT ANSWER=> Gross Operating Profit"
"If monthly depreciation expenses increase than income tax on profit would tend to - CORRECT
ANSWER=> decrease; the depreciation is when the value goes down"
"Where is the hotels GOP or House Profit is listed - CORRECT ANSWER=> summary income statement
(Profit and loss)"
"Which statement lists the amounts of accounts Receivable this month - CORRECT ANSWER=> cash
flow; collection of accounts receivable."
"On which statement would you find payroll, wages and employee benefits for rooms division -
CORRECT ANSWER=> Departmental Income Statement"
"How is working capital calculated - CORRECT ANSWER=> Current Assets - current liabilities"
"Total revenue- departmental profit- undistributed expenses-management fees- fixed charges-
replacement reserve + other income= - CORRECT ANSWER=> net profit"
