What steps could be taken to adequately control cash

Assignment Help Financial Accounting
Reference no: EM132887595

Many of the front office manager's headaches are caused by the skipper-the guest who departs without paying the bill. However, a dishonest employee can cause even more problems by using this situation as a cover-up. Consider the following situation. A guest checks in and is assigned to an $80 room. The clerk forgets to ask for a mailing address. The following day, the guest, hurrying to catch a flight, runs to the cashier's window, throws down $80 in cash, says "Check me out of 423," and rushes off.

The cashier looks at the bill in the file and notices that the guest left no address. The cashier reasons that the credit department will never track down the guest, so he pockets the $80 and leaves the bill in the file. The next day, room 423 is reported unoccupied. The bill by this time stands at $160 and is charged to "skippers."

Some hotels make no effort to locate skippers; at any rate, such attempts are usually without success. In this case, even finding the guest will not solve the problem; the guest has no receipt to prove his or her claim that the bill was paid.

Problem 1. What steps could be taken to adequately control cash in this situation?

Reference no: EM132887595

Questions Cloud

What was joe net profit on the option : The strike price was $1.76 and the spot rate at the time the pound option was exercised was $1.52. What was Joe's net profit on the option
How adverse effects on earnings could be reduced : How a U.S. company's commitment to purchase inventory with settlement in foreign currency (FC) might become less attractive over time
What are facts and trends for country-region : Opportunities from Diversity: How diverse is the country/region? What are facts and trends for the country/region?
Creating a compensation or bonus plan : Creating a compensation or bonus plan that is "fair" and "balanced" is necessary to avoid unfair pay practices that could be deemed discriminatory.
What steps could be taken to adequately control cash : What steps could be taken to adequately control cash in this situation? Many of the front office manager's headaches are caused by the skipper-the guest.
What is the nature of planning : Question 1. Define Directing? Question 2. What Is Organizing? Question 3. What Is The Nature Of Planning?
What are some challenges to effective recruiting : Explain how social media and other online sources are used to recruit candidates. What are some challenges to effective recruiting
How much cash will have paid to suppliers of inventory : The beginning to the end of an accounting period and purchases inventory worth $1,000, how much cash will it have paid to suppliers of inventory?
How do you think telemarketing can be made more effective : What Do You Understand By B2b, B2c And B2g? How Do You Think Telemarketing Can Be Made More Effective?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the par value of its stock after the split

A company has 360,000 shares authorized, 200,000 shares issued, and 100,000 shares outstanding. The balance in its Common Stock account is $200,000. The company does a 2-for-1 stock split. What is the par value of its stock after the split?

  What net realizable value of accounts receivable for brielle

Brielle Mortgage Services adjusts and closes at the end of the fiscal year resulting in a balance of $450,000 in their Accounts Receivable and Allowance for Doubtful Accounts has a balance of $25,000. What is the net realizable value of the accoun..

  About the application of the proper accounting procedures

ABC Co. has three issues related to revenue recognition that they are concerned about the application of the proper accounting procedures. Each of these issues are independent of each other. Briefly describe the accounting issue involved for each of ..

  Show a journal entry to record depletion during the year

Salter Mining Company purchased the Northern Tier Mine for $67 million cash. Show a journal entry to record depletion during the year

  Whats the intrinsic value of the stock

Whats the intrinsic value of the stock based on the required rates of return - What is the intrinsic value of the companys common stock?

  Prepare journal entry to record the exchange of equipment

Prepare the journal entry to record the exchange of the equipment. Karley Company exchanged old equipment for new equipment on July 1, 2014.

  Compute the net interest cost

2032, 6.50 percent For each bid, compute the net interest cost (NIC) and the true interest cost (TIC). Which bid is more advantageous for the city?

  What amount of tax revenue is it required to collect

Assume that in the authority’s second year of operations, it incurs the same costs, except that it purchases no new equipment. What amount of tax revenue is it required to collect?

  What is the after-tax cash flow from sale of the machinery

Your firm purchased machinery with a 7-year MACRS life for $10 million. The project, however, will end after 5 years. If the equipment can be sold for $4 million at the completion of the project, and your firm’s tax rate is 35 percent, what is the af..

  What is timber ridge net profit margin

What is Timber Ridge's net profit margin? Round to 3 decimal places. The Timber Ridge Company has the following relationships

  What is the require return for this stock

Suppose the market return is 8%, the risk-free rate is 1% and the beta for a given stock is 1.2. What is the require return for this stock

  What would be the balance in jestor investment in jesvic

On January 1, 20X5, Jestor Inc. and Victory Inc. What would be the balance in Jestor's "investment in Jesvic" account on December 31, 20X5?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd