LESSON 9: FRONT OFFICE ACCOUNTING

Question 1

a systematic process wherein the front office accounting staff identifies,
records, measures, classifies, verifies, summarizes, interpret, organizes, and communicates financial
information for a hotel business.

Answer 1

Front Office Accounting

Question 2

Positioning of T accounts

Answer 2

Account name
Charges | Payments

Question 3

Objectives of accounting

Answer 3

• To handle transactions between the guest and the hotel accurately.
• To track the transactions throughout the guest’s occupancy.
• To monitor the guest’s credit limit.
• To avoid possibility of any fraud.
• To organize and report the transactional information.

Question 4

A _______ is a statement of all transaction that has taken place in

Answer 4

Folio

Question 5

They reduce the guest’s outstanding balance. These entries include complete or partial payment, or adjustments against tokens.

Answer 5

Credit

Question 6

They increase the outstanding balance in the guest account. Debit entries include charges from restaurant, room-service, health spa, laundry, telephone, and transportation.

Answer 6

Debit

Question 7

the guest settles all expense incurred during his stay. Settlement of dues may be done prior or during check-out. (account settlement)

Answer 7

By guest

Question 8

in this program payment method all incurred expense during the guest stay
will be shouldered by his company. This kind of program takes place if there is a prior arrangement between the company and the hotel.

Answer 8

As by organization

Question 9

wherein a guest may pay in local currency. One example in
Philippines guest local or international pay in Peso. (Account settlement methods)

Answer 9

Account settlement in local currency

Question 10

wherein a guest may pay in foreign currency however there is a minimal charge of 3% to 6% in the total payable. (Account settlement methods)

Answer 10

Account Settlement in Foreign Currency

Question 11

wherein guest may pay through check. However, personal checks may be discouraged by hotels for safety reason because it may be a bounce back check meaning there is sufficient fund in the guests account. Mostly, company checks are accepted. (Account settlement methods)

Answer 11

Account Settlement using Travellers Check

Question 12

wherein guest may pay with the use of a debit card by swiping the debit card in the hotels payment terminal. Using debit card will automatically deduct the amount payable in your card. (Account settlement methods)

Answer 12

Debit Card

Question 13

wherein guest may use the company credit card or his personal credit card. In this case identification card is needed to validate if the credit card holder is the owner to avoid trouble and fraud in the future. (Account settlement methods)

Answer 13

Credit Card

Question 14

wherein guest may pay half as cash and the remaining balance as credit card. (Account settlement methods)

Answer 14

Combined account settlement