Week 6 Quiz: Accountin The type of accounting information most used by restauran

Question

Week 6 Quiz: Accountin The type of accounting information most used by restaurant managers is related to tax accounting C True False A balance sheet reports financial information for a restaurant at a specific point in time. A. True B. False All expenses can be classified as either "variable" or "fixed" A. True B. False The first step in forecasting restaurant revenues as budgets are developed is to evaluate relevant changes in the restaurant's internal environment A. True B. False The first step in the four-step labor cost control system is to forecast guests and/or revenues A. True B. False

Explanation / Answer

1) True

Also known as cash-based accounting, in tax accounting companies only record sales when they receive cash for it. Also, the purchase expenses are only recorded when they are paid. With this method, the focus is on cash payments and cash receipts rather than just the purchase or sales transaction.

2) True

Balance Sheet is a statement of the assets, liabilities, and capital of a business at a particular point in time.

3) True

All expenses can be classified as fixed or variable. There can also be certain expenses which are semi-variable.

4) True

5) False

First Step - Select Productivity Measures

Secons Step - Forecast Guests and/or Revenues and Staffing Needs

6) True

Labour cost percentage = Sales or Revenue/Labour cost

7) False

This formula does not affect with the change in menu pricing. It is affected by the increase or decrease in labour cost.

8) True

Guests Served per Labor Hour is a measure of productivity (not a measure of cost and productivity or sales and productivity)

9) False

10) False

Revenue control systems are developed in restaurant because one of a manager’s most important responsibilities is to protect the restaurant’s assets from theft and fraud. A restaurant can be an easy victim of these crimes, so internal control systems that maintain the security of its assets are
critical.

11) False

Manager must investigate the cash/bank overages.

12) True

Moden day POS systems can be used for offers table-side ordering, menu updates, inventory management, credit card processing, tip calculation, and more.

13) False

Service charges distributed to employees are treated as regular wages, subject to normal payroll tax withholding rules.

The IRS defines a tip as having the following characteristics:

14) True

Collusion is a secret agreement between two or more parties to commit fraud by deceiving, misleading others.

15) False

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