One of the following is not true about front Offices Accounting A. Creating and maintaining an accurate accounting record for each guest or non-guest B. contains and stores the various business transactions held after guest check out C. it increase internal control over cash and non-cash transactions D. It is a bin or container the store different financial data

Question

What is the primary purpose of a front office account in a hotel? A) To manage employee payroll B) To accumulate and summarize financial data from guest stays C) To track inventory levels D) To oversee marketing activities
In front office accounting, what does the term"debit" refer to? A) A payment made by the guest B) An addition of a charge to the guest’s account C) A record of non-cash transactions D) The total balance of an account
Which of the following is NOT a responsibility of the front office accounting system? A) Creating accurate accounting records for guests B) Recording settlement for goods and services provided C) Managing the hotel’s housekeeping staff D) Tracking all financial transactions throughout the guest cyde
What are the three main types of accounts maintained by the front office? A) Employee accounts, vendor accounts, and guest accounts B) Resident guest accounts city accounts, and management accounts C) Corporate accounts, personal accounts, and investment accounts D) Cash accounts, credit accounts, and debit accounts
When a credit is posted to a guest’s account, what happens to the account balance? A) it remains unchanged B) It increases C) It decreases D) It is reset to zero
Show that detailed documentary evidences for a transaction from its source to the front

Answer 1

Let's address each question about front office accounting in a hotel setting:

1. Which statement is not true about front office accounting?

   • B. Contains and stores the various business transactions held after guest checkout.
     • This statement is misleading because while front office accounting is concerned with transactions made during guests' stays, the holding of transactions after checkout typically falls under a different accounting category (like accounting records or archives).

2. What is the primary purpose of a front office account in a hotel?

   • B) To accumulate and summarize financial data from guest stays.
     • The primary purpose of front office accounts is to manage financial transactions related to guest stays and summarize data for accounting and reporting.

3. In front office accounting, what does the term "debit" refer to?

   • B) An addition of a charge to the guest’s account.
     • In accounting, a debit typically represents a charge, which increases the balance of an asset or expense account.

4. Which of the following is NOT a responsibility of the front office accounting system?

   • C) Managing the hotel’s housekeeping staff.
     • Managing housekeeping staff is not a function of front office accounting; it pertains to operations management.

5. What are the three main types of accounts maintained by the front office?

   • B) Resident guest accounts, city accounts, and management accounts.
     • These types of accounts are essential in tracking financial transactions related to guests and hotel management.

6. When a credit is posted to a guest’s account, what happens to the account balance?

   • C) It decreases.
     • A credit reduces the balance owed by the guest.

7. Show that detailed documentary evidence for a transaction from its source to the front.

   • To demonstrate detailed documentary evidence for a transaction, you would typically follow the transaction from its origin (source) through to its recording in the accounting system. For example:
     • A guest checks in (source transaction).
     • The front desk generates a registration ticket (documentary evidence).
     • Room charges are applied to the guest's account (accounting entry).
     • Receipts for any additional services (e.g., restaurant charges) are issued (documentary evidence).
     • Upon checkout, the total is settled, and a final invoice is presented, which is the culmination of all recorded transactions (detailed documentary evidence).

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