General 4.1

Question 1

What are some key points about CHAE General?

Answer 1

• Characteristics of the hospitality industry
• Importance of hiring right associates – reference checks

Compensation

• Tips versus service charges
• Linking pay to performance

Turnover

• Turnover defined
• Reasons for turnover
• Cost of turnover/replacement
• Effects of turnover

Question 2

What are the Financial Statement Items?

Answer 2

• Assets - Resource with economic value
  
  • Property and Equipment
    
    • Consistency Principle
    • Depreciation
    • Cost Basis
  • Prepaid Expenses
    
    • Recognition
• Liabilities – Amounts owed
• Assets = Liabilities + Owner’s Equity
  
  • Otherwise know as the accounting equation

Question 3

What are key items about the Income Statement?

Answer 3

The Income Statement (Profit and Loss, Statement of Activities)

• Matching principle
• Fixed expenses vs. variable expenses
• Leases fixed or variable
  
  • Indifference point
• Breakeven point
• Contribution margin

Question 4

What are key items about Cash Flow Statement?

Answer 4

• Direct method
• Indirect method