Management Accounting
Sample Questions for in class Quiz-1
1.The year 2022 has been a great one for Excel Nightclub, which managed to earn $50,000 in net
income. Therefore, the board decided to declare and pay dividends by year end. The balance of
Retained Earning was $110,000 in 2021 and $120,000 in 2022. How much dividends were paid
in 2022?
110,000 + 50,000 – Div = 120,000 therefore, Div = $40,000
2.business had net increase of $40,000 in its cash account in 2022. If net cash provided by
operating activities was $60,000 and net cash provided by financing activities was $30,000, how
much cash was used for investing activities?
60,000+30,000+IA = 40,000
Therefore, IA = - $50,000
3.The following information pertains to Bush Brew Pub for the fiscal year 2022.
cash provided (used) by investing activities.
Purchase of equipment: $30,000
Sale of long-term investments: 12,000
Increase in accounts payable: 6,000
Repayment of loan payable: 15,000
Depreciation of equipment: 7,000
Decrease in A/R: $20,000
Net Income: $30,000
Payment of dividends: $10,000
a. How much was net cash flow in operating activities? 30,000 + 7,000 +6,000 +20,000=$63,000
b. How much was net cash flows in Investing activities? -30,000 +12,000 = – $18,000
c. How much was net cash flows in Financing activities? -15,000 -10,000 =-$25,000
d. How much was the net cash flows in 2022? 63,000 -18,000 – 25,000 = +$20,000
4.The following is part of the balance sheet for a business in 2022:
Equipment: $50,000
Less: ACC-DEP: (10,000)
Land: $30,000
a. How mush is the cost of equipment? $50,000
b. How much is the book value of equipment? $40,000
c. How much is the cost of the land? $30,000
d. How much is the book value of the land? $30,000
e. If they sell the equipment for $45,000, will they gain or loss? How much? Gain for $5,000
5. The following is part of a comparative balance sheet for a business:
2021
2022
Equipment $120,000 $100,000
ACC-DEP $20,000 $22,000.00
During the year 2022, equipment depreciated for $5,000. If there was a $2,000 loss on the sale
of equipment, how much have they sold the equipment?
Cost of equipment sold: $ 120,000-100,000=$20,000
ACC-DEP of equipment sold: 20,000+5,000 – 22,000 = $3,000
Book Value of equipment sold = 20,000 -3,000 = $17,000
Equipment was sold for 17,000 – 2,000 = $15,000
6. A hotel has 250 rooms available for sale. Last year the hotel sold 73,000 rooms, and had
$8,760,000 rooms revenue.
a. What was the hotel’s occupancy percentage last year?
b. What was the hotel’s ADR last year?
c. What was the hotel’s RevPAR last year?
a. (73,000)/(250*365)= 80%
b. (8,760,000)/(250*0.80*365)=$120
c. (8,760,000)/(250*365)= $96
7. Last night a hotel achieved an ADR of $240 and total rooms revenue of $48,000. The hotel has
250 rooms available for sale. What was the hotel’s occupancy percentage last night?
48,000/240=200 rooms sold
200/250=80%
8. Last night a hotel achieved an ADR of $150 and total rooms revenue of $21,000. The hotel has
250 rooms available for sale, but 20 were out-of-order last night. What was the hotel’s RevPAR
last night?
(21,000)/(250-20)=$91.30
9. Last year a 400-room hotel had rooms department costs of $2,277,600, and achieved a 78%
occupancy. What was the hotel’s CPOR for rooms department costs?
2,277,600/(400*0.78*365)= $20
10. n January, a restaurant had a beginning food inventory of $80,000, made purchases of
$240,000 and had an ending inventory of $50,000. Employee meal costs for the month were
$10,000. Food revenue for the month of February was $800,000. What was the restaurant’s cost
of food sold and food cost percentage for the month of January?
Cost of Food Sold = 80,000+240,000-50,000-10,000=$260,000
260,000/800,000=32.5%
11. In March, a restaurant achieved food sales of $800,000 and beverage sales of $200,000. The
restaurant achieved a 30% food cost and a 15% beverage cost. What was the restaurant’s overall
gross profit ratio?
Cost of food: 0.30 * 800,000=$240,000
GM of food: 800,000-240,000=$560,000
Cost of Beverage: 0.15*200,000=$30,000
GM of Beverage=200,000-30,000=$170,000
There are other ways to answer this question.
Total Sales: 800,000+200,000=$1,000,000
Total GM = 560,000+170,000=$730,000
GM %= 730,000/1,000,000=73%
12. This January, a restaurant achieved a food cost percentage of 30%. Last January the
restaurant achieved a food cost percentage of 25%. What was the percentage change in the
restaurant’s food cost percentage this year when compared to last year?
(30-25)/25=20% increase
13. A restaurant has 50 seats and opens for dinner 5 days a week, 5 hours per evening. The
restaurant’s annual revenue is $650,000, and its seat turnover is 3.
How much is its average check?
(650,000)/(50*3*5*52)=$16.67
14. A hotel is open 365 days per year. It has 125 rooms available for sale. Last year the hotel sold
34,450 rooms. What was the hotel’s occupancy percentage last year?
(34,450) / (125 * 365) =75.51%
15. Last night a hotel achieved an ADR of $220.00 and total rooms revenue of $66,000. The hotel
has 400 rooms available for sale. What was the hotel’s occupancy percentage last night?
(66,000) / (220) = 300 rooms sold
300 / 400 = 75%
16. Last night a hotel achieved an ADR of $120.00 and total rooms revenue of $18,000. The hotel
has 400 rooms available for sale, but 25 were out-of-order last night. What was the OCC%? What
was the hotel’s RevPAR last night?
18,000 / 120 = 150 rooms sold
RevPAR= 18,000/(375)=$48
OCC%= (150) / (400-25) = 40%
17. Last year a 500-room hotel was open for 365 days, had rooms department costs of
$2,409,000, and achieved a 75% occupancy. What was the hotel’s CPOR for rooms department
costs?
# of rooms sold in a year= 75% * 500 * 365=136,875
CPOR = (2,409,000) / (136,875) = $17.60
18. In February, a restaurant had a beginning inventory of $85,000, made purchases of $235,000
and had an ending inventory of $70,000. Employee meal costs for the month were $12,000. Food
revenue for the month of February was $800,000. What was the restaurant’s food cost
percentage for the month of February?
Cost of Food Sold = 85,000 + 235,000 – 70,000 – 12,000 = $238,000
238,000 / 800,000 =29.75%
19. This January, a restaurant achieved a food cost percentage of 28%. Last January the
restaurant achieved a food cost percentage of 26%. What was the percentage change in the
restaurant’s food cost percentage this year when compared to last year?
(new – Old) / (Old) = (0.28 – 0.26) / (0.26) =7.69%
20. A restaurant has 80 seats and opens for dinner 6 days a week, 5 hours per evening. If the
restaurant’s annual revenue is $870,000, and the seat turnover of this restaurant is 2.5, how
much is its average check?
(870,000) / (80 * 2.5* 6 * 52) = $13.94