Chapter 11

Maintaining and Improving the Revenue Control System

Multiple Choice Exam Questions

1. The two major threats to revenue security in a food service operation are external threats and
2. collusion.
3. embezzlement
4. internal threats.
5. server-related threats.
6. When developing a revenue control system, managers must ensure that documented product requests are equal to
7. guest charges.
8. sales deposits.
9. product issues.
10. total sales receipts.
11. An operation experiences cashier shortages that average $50.00 per day. If the operation is open 360 days per year, what will be this operation’s annual revenue loss due to cashier shortages?
12. $180
13. $1,800
14. $18,000
15. $180,000
16. An operation’s guests are least likely to walk, or skip, their bills when
17. the operation’s guest check averages are low.
18. the operation’s guest check averages are high.
19. they must pay for their food after receiving it.
20. they must pay for their food before receiving it.
21. A quick-change artist is a guest who attempts to defraud a food service operation by
22. skipping a check.
23. confusing a cashier.
24. stealing food products.
25. falsifying vendor invoices.
26. For what type of payment cards are usage fees so high that many operators do not accept them for the payment of guest bills?
27. E-wallet cards
28. Travel and Entertainment (T&E)
29. Debit cards
30. Credit cards
31. With which type of payment card is a user’s purchase amount automatically transferred from the user’s bank account to the entity issuing the payment card?
32. Debit
33. Credit
34. Amex
35. Travel and Entertainment (T&E)
36. Hand held payment card scanners help reduce the potential for payment card skimming because when such scanners are used
37. guests cannot skip their checks.
38. employees do not process guest charges.
39. payment card charges are processed faster.
40. guests never lose sight of their payment cards.
41. What is the typical amount of card-related fees a food service operation will pay when it allows its guests to use payment cards to settle their bills?
42. 1-2% of the amount charged
43. 3-6% of the amount charged
44. 7-12% of the amount charged
45. 13-20% of the amount charged
46. No food or beverage should be issued to any server unless the server first
47. completes a deposit slip.
48. records the sale in the POS system.
49. verbally requests the item from the kitchen or bar.
50. collects the amount of the sale from the guest being served.
51. An open check is one that has been used to authorize product issues from the kitchen or bar,
52. but has not yet been filled.
53. but has been walked by a guest.
54. and its total due has been added to the operation’s sales total.
55. and its total due has not yet been added to the operation’s sales total.
56. Managers bond their employees to insure against the possibility that
57. guests will steal.
58. employees will steal.
59. guests will walk (skip) their checks.
60. employees will quit without giving proper notice.
61. A cashier begins a shift with $500 in a cash drawer. The POS records sales of $3,850.20 during the cashier’s shift. The actual cash and other payment forms held in the drawer at the end of the cashier’s shift equal $4,348.20. This cashier’s drawer is
62. $2.00 over.
63. $2.00 short.
64. $502.00 over.
65. $502.00 short.
66. What would be the effect on the cashier’s cash drawer if a cashier collected full payment from a guest, and then added a coupon to the cash drawer while simultaneously removing sales revenue equal to the value of the coupon?
67. The drawer will be in balance
68. The drawer will be over by the value of the coupon
69. The drawer will be over by the value of the guest sale
70. The drawer will be short by the value of the guest sale
71. What is the POS report that sets an operation’s sales figure in a specific time period back to zero, to begin recording sales in a new time period?
72. X report
73. Y report
74. Z report
75. Transaction report
76. A manager implements a policy that requires bartenders to record all drink sales prior to making drinks. What is the revenue control task this policy directly addresses?
77. Verification of sales receipts
78. Verification of guest charges
79. Verification of sales deposits
80. Verification of products issued
81. At what step in the revenue security system must operations’ record the value of the employee meals they serve?
82. Verification of sales receipts
83. Verification of guest charges
84. Verification of products issued
85. Verification of accounts receivable
86. In a well-managed food service operation, total guest check-related revenue should equal guest check totals, as well as
87. tips only.
88. tips and taxes.
89. service charges only.
90. service charges and taxes.
91. In a well-run food service operation, whose job is it to verify the deposit of daily sales revenue?
92. Hosts
93. Servers
94. Cashiers
95. Managers
96. What is an activity that is a common form of embezzlement?
97. Theft of food products
98. Falsification of bank deposits
99. Excessive requests for time off
100. Overconsumption of employee meals
101. The primary purpose of a bank reconciliation is to compare an operation’s
102. sales records with the bank’s acceptance records.
103. deposit records with the bank’s acceptance records.
104. product issues records with the bank’s acceptance records.
105. inventory valuation records with the bank’s acceptance records.
106. What is the term used to indicate the amounts of money owed to an operation by its guests, but which have not yet been collected from those guests?
107. Accounts payable
108. Accounts receivable
109. Unrecorded accounts
110. Uncollectable accounts
111. What is a danger resulting from excessively high levels of accounts receivable in a food service operation?
112. The operation’s sales will be over-reported
113. The operation’s sales will be under-reported
114. The operation may experience operating cash overages
115. The operation may experience operating cash shortages
116. In a banquet setting, where attending guests are sold drink coupons, the person selling the coupons
117. must be bonded.
118. cannot be bonded.
119. must be the same person servings the drinks.
120. must be different from the person servings the drinks.
121. When should managers pay invoices submitted by their vendors?
122. When purchase orders are issued
123. When the invoices are submitted by vendors
124. When products are accepted by receiving staff
125. When the invoices are verified as legitimate

True/False Exam Questions

1. In a well-designed revenue control system total guest charges will be equal to total sales receipts.
   1. True
   2. False
2. Counterfeit money used by guests to pay their bills will be honored as legal currency by banks.
   1. True
   2. False
3. The role of a merchant service provider (MSP) is to coordinate and manage an operation’s payment card acceptance and funds collection.
   1. True
   2. False
4. Typical payment card fees range from 10-15% of the total amount charged on the payment card.
   1. True
   2. False
5. Skimming is a form of payment card fraud used by quick change artists.
   1. True
   2. False
6. In a properly operating precheck/postcheck revenue control system, product issues should equal product sales.
   1. True
   2. False
7. The purpose of bonding employees is to eliminate the possibility of collusion in a food service operation.
   1. True
   2. False
8. In a properly operating revenue control system, no product should be issued from a kitchen or bar until a permanent record of the issue is made.
   1. True
   2. False
9. Service charges collected by management should be excluded from an operation’s reported daily guest check revenue.
   1. True
   2. False
10. Embezzlement is a form of fraud most often practiced by an operation’s vendors.
    1. True
    2. False