Question 1
A hotel purchases kitchen equipment with cash. What is the immediate accounting effect?
Show answer & explanation
Correct answer: B - Assets are unchanged because one asset is exchanged for another
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These 10 free CHAE questions are organized by exam domain, so you can see how each part of the Certified Hospitality Accountant Executive blueprint is tested. Reveal the answer and explanation under each question.
A hotel purchases kitchen equipment with cash. What is the immediate accounting effect?
Correct answer: B - Assets are unchanged because one asset is exchanged for another
A property wants to know whether daily operations generated cash during the period. Which statement should management review?
Correct answer: A - Statement of cash flows
A hotel has current assets of $480,000 and current liabilities of $320,000. What is working capital?
Correct answer: A - $160,000
An expense is recorded before payment is made because it belongs to the current reporting period. Which concept applies?
Correct answer: A - Accrual accounting
A hotel buys a new building. On the statement of cash flows, this purchase is classified as:
Correct answer: B - Investing activity
Actual food costs exceed the approved budget and reduce expected profit. This difference is a:
Correct answer: B - Unfavorable variance
A hotel sold 18,000 rooms and earned $2,700,000 in room revenue. Which calculation measures average daily rate?
Correct answer: A - Room revenue divided by rooms sold
A hotel has room revenue of $900,000 and 30,000 available rooms. What is RevPAR?
Correct answer: B - $30
A revenue manager adjusts prices after analyzing demand patterns and competitor activity. This is an example of:
Correct answer: A - Revenue management
Which statement best distinguishes a forecast from an annual budget?
Correct answer: A - A forecast updates expectations using current information
The CHAE exam also covers these domains. Drill them in the full free practice test:
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