What is iou in front office?
An IOU (abbreviated from the phrase "I owe you") is usually an informal document acknowledging debt. Receipts samples used in hotels (Paid Out / Petty cash) · Download Sample Paidout Formats: · Paid out Receipt Sample - Hotels · Latest Front Office Formats. Front Office Management - Terminology - Following are some common terms used in relation to the front office department −. What is an IOU? The term IOU is the phonetic spelling of the phrase "I Owe You. What does IOU stand for? - I Owe You - I Owe You (IOU) is an informal document that acknowledges a debt owed.
(a) Chain property
(b) Independent property
(c) Franchisee
(d) Corporate property
2. The occupancy report prepared by the front desk for April 7, at 3 pm of the same day, lists room 501 as a stay over. At 2 pm on April 7 , the housekeeping report lists room 501 as vacant and ready for sale. The room status discrepancy could have resulted from
(a) A walk-in
(b) A lock-out
(c) A late check-out
(d) A skipper
3. A credit limit established by hotel is known as
(a) House limit
(b) Outstanding limit
(c) High balance limit
(d) Ceiling
4. A pending charge posting after the guest has checked-out is known as
(a) City voucher
(b) Late charge
(c) Miscellaneous charge
(d) Due bank
5. Which of the following reports is especially helpful to properties that are considering expansion
(a) Agent commission report
(b) Expected Arrival report
(c) No-show report
(d) Turn away report
6. A package offered by a resort includes the cost of breakfast, and either Lunch or Dinner in the room charge. This arrangement is called
(a) The European Plan
(b) The Bermuda Plan
(c) The American Plan
(d) The Modified American Plan 7. Who out of the below is not a member of HRACC
(a) Principal, Institute of Hotel Management
(b) Representative of Ministry of Tourism,
(c) Representative of IATA
(d) Representative of FHRAI
8. A charge purchase transaction will have following impact on the outstanding balance of the folio account
(a) Outstanding balance of the folio will increase
(b) Outstanding balance of the folio will decrease
(c) Outstanding balance of the folio will remain the same
(d) Outstanding balance of the folio will become zero
9. Cash disbursed by front office on behalf of the guest is known as
(a) IOU
(b) Cash bank
(c) Encashment
(d) Paid-out
10. An imbalance that occurs when the total of cash and checks in a cash register drawer is greater than the initial bank plus net cash receipts
(a) Due back
(b) Overage
(c) City ledger
(d) Guest ledger
11. Which of the following is not a part of the sub-classification of heritage hotels in India
(a) Heritage
(b) Heritage Classic
(c) Heritage royal
(d) Heritage grand
12. For a hotel to get classified as a five star hotel, minimum number of let table rooms required are
(a) 10
(b) 20
(c) 30
(d) 50
13. Two single beds joined together and sharing a common headboard is called as:
(a) Twin
(b) Hollywood twin
(c) Double
(d) Quad 14. Which of the following is not a part of Hubbart formula of calculating room tariff
(a) Market based pricing
(b) Return on investment
(c) Non-room revenue
(d) Operating expenses
15. Hotel ABC has total 210 rooms out of which 182 are occupied on 12th March. Total room revenue of the hotel for the above given date is Rs. 21,20,000/. Calculate RevPAR
(a) Rs. 10,095.23
(b) Rs. 11,648.35
(c) Rs. 5408.16
(d) Rs. 6875.25
16. Ratio of the total number of occupied rooms to the total number of rooms that are available for sale is known as
(a) Yield %
(b) ARR
(c) Occupancy%
(d) House count
17. Selective overbooking is also called as
(a) Duration control
(b) Discount management
(c) Differential pricing
(d) Capacity management
18. The mathematical difference between potential average double rate and potential average single rate is called as
(a) Room rate achievement factor
(b) Yield %
(c) Rate spread
(d) Potential ARR
19. Select the odd one out
(a) Global Distribution System
(b) Point of sale system
(c) Centralized reservation system
(d) On-line room booking portals
20. Delinquent account is a term associated with
(a) Account correction
(b) Account allowance
(c) Account aging (d) Non-Guest Folio 21. Which of the following is generally not accepted as a mode of settlement of guest account
(a) Traveler's cheque
(b) Credit card
(c) Travel agent voucher
(d) Personal cheque
22. A day or even a season between two busier time periods is known as
(a) Leg period
(b) Shoulder period
(c) Head period
(d) Ankle period
23. Hotel XYZ has 250 rooms with a rack rate of Rs. 10,000 for each room. On 15th March 200 rooms were occupied at an ARR of Rs. 8,000. Calculate Yield %
(a) 78%
(b) 1.56%
(c) 64%
(d) 56%
24. Rate below which room will not be sold by the hotel on a given date is known as
(a) Crib Rate
(b) Introductory rate
(c) Rack rate
(d) Hurdle rate
25. Situation where a room is occupied according to front office records but is actually vacant because front office failed to update their records is referred as
(a) Sleeper
(b) Skipper
(c) Sleep-out
(d) Bounced off
26. Which of the following room rate plans includes a room only and no meals.
(a) European plan
(b) American plan
(c) Continental Plan
(d) Full Pension
27. A specially abled room is given to
(a) Sporting Heroes
(b) Young Travelers
(c) Differently Abled Guest
(d) Back Packers 28. What is Rack Rate?
(a) Lowest cost of accommodation
(b) The full cost of Holiday package
(c) The Published cost of Accommodation
(d) Cost of accommodation plus break fast
29. Time share is a particular type of accommodation that allows guest to
(a) Bring their own accommodation in the form of a caravan or tent.
(b) Enjoy accommodation and breakfast as a package
(c) Enjoy a city centre location
(d) Own a self contained apartment for the same period of the time each year.
30. What is intangible aspect of accommodation
(a) The Bed
(b) The level of service and atmosphere the guest experience
(c) The quality of fixture and fittings in the room.
(d) The various accommodation type
31. Overbooking is
(a) Assigning more rooms per guest
(b) Ensuring the hotel achieves the maximum rate per room
(c) Determining the number of rooms that are available for sale
(d) The process of selling more rooms than are actually available
32. A hotel can maintain the registration record in
(a) Hard -bound Register
(b) Loose leaf register
(c) Guest registration card
(d) All of these.
33. The information required to fill in the guest registration can be gathered from which of the following?
(a) Reservation Form
(b) Guest History card
(c) Both a and b
(d) None of these 34. The temporary visa may be categorized as
(a) Tourist visa
(b) Student Visa
(c) Transit Visa
(d) All of these
35. Filling of which of the form is mandatory in case of registration of a foreign guest.
(a) Form C
(b) Form F
(c) Form D
(d) None of these
36. When the guest complains are not resolved by front office assistant , then he/ she should always
(a) Consult with superiors
(b) Try to convince the guest
(c) Ignore the complain
(d) None of these.
37. The procedure for delivering the luggage of the guest involves
(a) Requesting the guest to show counterfoil
(b) Tallying the counterfoil
(c) Just asking for room number
(d) Both a and b
38. In which circumstances /situations a guest may want to change his/her room?
(a) The room assigned is not as per his her choice.
(b) The number of occupants in the room changes
(c) The equipment or facility in the room is not working satisfactorily
(d) All of these.
39. The cash amount provided by the hotel to the cashier for daily transaction is called
(a) Petty Cash
(b) Impress cash
(c) Cash Bank
(d) Guest account 40.The bell captain raises which of the following documents to initiate a guest departure.
(a) Lobby control sheet
(b) luggage tag
(c) Departure errand card
(d) Arrival and departure list.
41. Charges raised by minor revenue department into the guest folio are called
(a) advance deposit
(b) Miscellaneous charges
(c) Paid Out
(d) Discounts
42. A guest who leaves the hotel without clearing the payment is called
(a) Skipper
(b) Visitor Paid-out
(c) Sleeper
(d) Non-Guest Account
43. What is the term used for the upper limit of credit facility extended to a guest
(a) House limit
(b) Credit Limit
(c) Visitor Paid out
(d) Folio Limit
44. The collection of same type of accounts is called
(a) Ledger
(b) allowances
(c) Folio
(d) Vouchers
45. The report of guest account that are nearing or have crossed house limit are called
(a) Floor limit report
(b) Credit and debit report
(c) High balanced report
(d) None of these . 46. Which of the following function is carried out by night auditor?
(a) Ensure the accuracy of various accounts
(b) Reconciles all financial transaction with supporting vouchers
(c) Monitor house limit
(d) All of these
47. The arbitrary time that is supposed to be the end of the financial transaction for a particular day is known as
(a) End of the day
(b) Check out time
(c) Sleeper
(d) none of these
48. The maximum share of market that can be occupied by a hotel is known as
(a) Rightful market share
(b) Occupancy percentage
(c) Rev Par
(d) None of these
49. Occupancy percentage multiplied by ADR is called
(a) Rev Par
(b) ADR
(c) House limit
(d) Rack Rate
50) Which of the following data is required for the calculation of occupancy ratio?
(a) Total number of sale-able rooms
(b) No of room sold
(c) House count
(d) All of these
51) Which of the following areas of a hotel has the greatest amount of guest contact?
(a) Reservation
(b) Housekeeping
(c) Front Office
(d) Sales 52) Which of the following department of the rooms division works most closely with the marketing and sales division within a hotel.
(a) Reservation
(b) Housekeeping
(c) Front Office
(d) Sales
53) In which of the following areas of a hotel are guest registered ,assigned rooms , and checked out?
(a) Reservation
(b) Concierge
(c) Front Office
(d) Sales
54. Concierge service are normally part of
(a) Sales department
(b) The Reservation department
(c) The Room division
(d) Food and beverage division
55. The term market segment refers to
(a) Different business segments the hotel receives its clients from
(b) Different cities the hotel receives its guest from
(c) Different markets located near the hotel
(d) None of the above
56. Why is it important to ensure maximum occupancy of accommodation?
(a) To maximize food and beverage sales
(b) Because accommodation cannot be stored for sale at a future date
(c) To ensure quality service
(d) To provide employees with meaningful employment.
57. The term Incognito in front office means
(a) VIP
(b) Scanty Baggage Guest
(c) Guest whose identity must not be revealed
(d) long stayer guest 58. Can we exchange Indian Rupees into US Dollars for a guest
(a) Yes
(b) No
(c) May be depends on the guest profile
(d) At times
59. How do you calculate ARR
(a) Total room revenue/ Total inventory
(b) Total room revenue /Total room sold
(c) Total Inventory/ Total Room Sold
(d) revenue/ Total Inventory
60. Which of the following is not a Front office form used during the pre-arrival stage?
(a) Reservation Record
(b) Letter of confirmation
(c) Reservation rack slip
(d) Registration card
61. Which of the following is recommended as a security measures for the front desk associate?
(a) Collecting a valid photo ID proof on arrival
(b) Not revealing room numbers of guest only to visitors or callers
(c) Requiring identification whenever someone request for a duplicate key
(d) All of the above.
62. The effort of front desk associate to convince guest to rent rooms in categories above standard accommodation are called?
(a) Upgrading
(b) consumer acceptance
(c) Pre-registration activities
(d) Up selling
63. Blocking fewer rooms than the number initially requested by group is called
(a) Wash
(b) Cut off
(c) Walking
(d) No-show 64. EDC is a link between
(a) Hotel and Bank
(b) Accounts dept and Front office
(c) Central reservation and Hotel reservation
(d) Restaurant with F&B office
65. The term HWC would be used for a
(a) Walk in Guest
(b) Fussy Guest
(c) Sick Guest
(d) None of the above
66. Concierge ,bell desk, and EPABX operators are part of
(a) Rooms division department
(b) Housekeeping department
(c) Front Office department
(d) Maintenance department.
67. The settling of a guest's bills at the front office is done by
(a) Reservation
(b) Reception
(c) Bell desk
(d) Travel Desk
68. The hotel employee who provides information and personalized service ,such as dinner reservation ,tour and travel arrangements, is known as
(a) Bell boy
(b) Concierge
(c) Valet
(d) None of these
69. For which type of information does the front office and housekeeping department communicate with each other?
(a) Room Status
(b) Security concern
(c) Special arrangement
(d) All of these 70. The market based pricing in determining the room rent of any hotel is done on the basis of which of the following?
(a) As per competition
(b) Market Tolerance
(c) Guest Requirement
(d) All of these.
71. The cost based pricing in determining the room rent of any hotel is done by
(a) Rule of thumb approach
(b) Hubbart formula
(c) Guest requirements
(d) both a and b
72. The situation in which the guest would stay for more than their scheduled stay dates is known as
(a) Under stay
(b) Overstay
(c) Stay Over
(d) Unscheduled stay
73 .Which one is the example of CRS?
(a) Galileo
(b) Sabre
(c) Amadeus
(d) Image
74. Which among these is the type of training in which employees are trained for roles other than their routine jobs?
(a) Cross training
(b) Out training
(c) Second training
(d) None of these.
75. Which of these are the 4Ps of marketing?
(a) Product ,Price, Place ,Promotion
(b) Print, Price , Place ,Promotion
(c) Product, People ,Print, Promotion
(d) Product , Price , Print, People General Knowledge -
76. Capital of Afghanistan?
(a) Kabul
(b) Kuwait city
(c) Kuala lumpur
(d) None of these
77. Currency of Egypt?
(a) Euro
(b) Pound
(c) Dollar
(d) Peso
78. People of Chile Speaks
(a) Spanish
(b) Mongol
(c) French
(d) Arabic
79. Where is Eiffel Tower?
(a) Cairo
(b) Paris
(c) Helsinki
Accounting section of any business or organization tracks, records, and manages the financial transactions of the business with its customers and clients. The accounting department handles the financial health and tracks the performance of any business directly. It is helpful for the management to take appropriate decisions.
When it comes to a hotel business, accounting is managing expenses and revenue. It provides a clear information to the guests thereby avoiding any unpleasant surprises to the guests. Let us know more about the accounts section of front office.
It is a systematic process in which the front office accounting staff identifies, records, measures, classifies, verifies, summarizes, interprets, organizes, and communicates financial information for a hotel business.
In the simplest form, a front office account resembles English alphabet ‘Block-T’.
In the domain of front office accounting, the charges are entered on the left side of the ‘T’. They increase the account balance. The payments are entered on the right side of the ‘T’. They decrease the account balance.
Where debit increases the outstanding balance and credit decreases it.
Most of the contemporary hotel businesses employ automated accounting system.
The objectives of accounting system are −
There are following typical accounts in hotel business dealing with customers −
Here are some prominent differences between a guest and a city account −
Some hotels allow the managers to entertain the guests’ queries or grievances, or any possibility of acquiring a business deal over a brief interaction with the guests. For example, if a guest has some problem about the hotel policy, the manager calls the guest for interaction over a coffee or a drink and tries to resolve the same. The expenses towards this interaction are then recorded on the management account.
A folio is a statement of all transaction that has taken place in a single account.
The front office staff records all the transactions between the guest and the hotel on the folio. The folio is opened with zero initial balance. The balance in the folio then increases or decreases depending upon the transactions. At the time of check-out, the folio balance must return to zero on settlement of payment.
There are following major types of folios −
The process of recording the entries on the folio is called ‘Posting’ of transactions. There are two basic types of postings −
Vouchers are detailed documentary evidences for a transaction. It transfers the transaction from its source to the front office. Vouchers are used to notify the front office about guest’s purchases or availing of any service at the hotel.
The following typical vouchers are used in the hotel −
Here are some typical vouchers.
The ledgers are a group of accounts. There are two ledgers the front office handles −
There are two other types of ledgers used in the hotel. Both types of ledgers are used by back office accounting section as given −
There are various issues regarding account settlement −
By Guest − The guest settles own account by cash/credit card/cheque.
By Organization − The organization settles guest account by transferring money to the hotel account.
There are following popular methods of account settlement −
Account Settlement in Local Currency − A guest can pay in terms of a local currency where the payment is not chargeable with conversion fees.
Account Settlement in Foreign Currency − If the guest prefers to pay in foreign currency, the service of payment by the bank is chargeable for around 3% to 6% of the total payable amount.
Account Settlement Using Traveler Check − Travelers’ cheques, the pre-printed cheques in the denominations of major world currencies are a good option to paying by cash.
Debit Card − Use of magnetic cards for payment against account is most common today. Paying by debit cards is as good as paying by cash as the amount of money is instantly transferred from the guest’s bank account into the hotel’s bank account.
In case of credit card settlement, the accounting staff mails the charge vouchers signed by guests to the credit card company; preferably within a specified time. The credit card company then settles the guest account by transferring money against it.
Credit Settlement by Organization − Many national, international, private, or public organizations send their employees or students for attending workshops, seminar, or meetings. Such organizations tie-up with the hotel for paying the bills of their employees on credit. The organizations reserve accommodations depending on the number of room nights (number of rooms × number of nights the representatives are expected to occupy). This is popularly known as account Settlement using Direct Billing.
In direct billing account settlement, the front office staff verifies guest folios and transfers the guest account to non-guest or city account. The hotel’s back-office accounting verifies the guest folios and is responsible to collect the direct billing amount from a direct billing agency such as embassy, university, or organizations.
Updated May 17, 2023
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An IOU, or “I Owe You“, is a written acknowledgment of debt to another party and is a simple form when two parties engage in a loan. An IOU is commonly used between trustworthy people such as business partners, friends, or family members.
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(1) Date Of IOU Effect. The date when this IOU becomes active will require definition. Therefore record the calendar date when this document first becomes effective using the first two lines in the First Section.
(2) Borrower Name. The Party who shall receive and repay the loaned amount according to the conditions of this agreement must be identified as the Borrower. The first line of the “Borrower” statement in this section should be supplied with his or her full name. Bear in mind, that while this type of loan can occasionally be engaged between two informal Parties, this agreement is a legal document and will require the full name of the Borrower as it appears on his or her Government-issued identification (i.e. Passport, Driver’s License, State I.D., etc.).
(3) Borrower Mailing Address. Submit the mailing address where the Borrower receives his or her mail on the second line of the “Borrower” statement.
(4) Lender Name. The Party who will lend money on the conditions defined by this paperwork should be named in the “Lender” statement. Use the first line in the “Lender” statement to display his or her identity by submitting his or her entire legal name as requested in this space. If the Lender is a Company that has been registered as a Business Entity with the State of its formation, then the full name of the Lending Company should be displayed here.
(5) Lender Mailing Address. The Lender’s full mailing address is required on the last line presented in Section I.
(6) Principal Amount. The loan that the Lender shall provide the Borrower must be documented in the space provided by Statement (A) (found in Section II). This must be the exact dollar amount that the Lender shall loan to the Borrower and should not include any expected interest revenue.
(7) Interest Rate. So long as the State’s usury laws are obeyed, virtually any Lender may require interest payments to be assessed on the principal loan amount. If the Lender and the Borrower agree that an interest rate may apply, then use the space in Statement (B) to document the interest rate that shall be compounded on the owed amount of the loan.
Select Item 8 Or Select Item 9 Or Select Item 10
(8) Per Month. Naturally, the percent of the owed amount being used as interest must be applied on a regular schedule. To this end, one of the three periods displayed in Statement (B) must be selected to solidify how often the interest rate above will be compounded. Commonly, a Lender will charge interest on a monthly basis. If this is the case and the Lender will apply and charge the above interest rate once a “Month” then select the first checkbox in Statement (B).
(9) Per Annum. If the Lender prefers to apply the interest rate to the amount owed once a year, then select the “Annum” checkbox from Statement (B).
(10) Compounded Per. Some Lenders may prefer that interest payment be calculated and applied to the owed amount for a period that cannot be considered monthly or yearly. If so, select the checkbox holding the “Other” label, then use the blank space available to detail precisely how often the interest rate above will be compounded on the owed amount of the loan made.
(11) Borrower Receive Date. The precise date when the Borrower expects the borrowed money making up this loan to be received from the Lender should be established on the blank spaces available in Statement (C).
Select And Complete Item 12 Or Select And Complete Item 14
(12) Lump Sum Payment. If this IOU must require that the Borrower repay the full loan amount (“Borrowed Money”) plus any owed interest in one payment as “A Lump Sum” then select the first checkbox found in Section III.
(13) Single Payment Details. If the Borrower will be obligated to repay the full principal amount of the loan as well as the applicable interest as one lump sum, then a record of this single payment’s dollar amount must be submitted to the space attached to the dollar symbol and the exact date when it is due across the final two lines of this statement.
(14) Payment Installments. If the Borrower will be required to submit equal payments for the loan amount across a span of time as “Installments,” then select the second checkbox of Section III. This selection will require that some clarification is provided by selecting one of the installment plans it defines.
If Applicable, Select And Complete Item 15 Or Item 16 Or Item 17 Or Item 18
(15) First Installment. To set an installment plan for payments on the concerned IOU loan, several details will be needed beginning with the dollar amount of the Borrower’s first payment to the Lender. This should be produced on the first blank space available in the “Installments” option while the date when this first payment is due should be documented across the two spaces following the phrase “…Payment Due On”
(16) Weekly Installment. Now that the first installment has been defined, the schedule detailing when the payments the Borrower must submit should be established. If the Borrower must make one payment every week consisting of the principal and interest installment amount defined by the “Installments” option, then select the “Weekly” checkbox. Additionally, a record of the date when the final payment will be due must be documented on the space available.
(17) Monthly Installment. If the Lender and Borrower intend to follow a “Monthly” payment schedule where the Borrower must submit the installment amount once a month, then select the second checkbox presented by the “Installments” option. The date when the final monthly payment will be due must be furnished to the formatted area provided.
(18) Quarterly Installment. If the Borrower must pay the installment amount once every three months, then the “Quarterly” checkbox should be selected. Additionally, document the calendar date when the final quarterly installment will be due where requested.
(19) Lender Signature. The Lender should review the details provided in the agreement above. Upon agreement, the Lender must sign the “Lender’s Signature” line to formally accept the conditions defined by the IOU above. If the Lender is a formal Company, then its Signature Representative may sign his or her name and complete the remaining execution requirements of this paperwork on behalf of the Lending Company.
(20) Date Of Lender Signature. Immediately after executing his or her signature, the Lender must define the current date on the adjacent line.
(21) Printed Name Of Lender. To complete the signature process the Lender must submit his or her full name in print.
(22) Borrower Signature. Once the Borrower has reviewed the above paperwork to satisfaction, he or she must sign the “Borrower’s Signature” line to officially execute this agreement.
(23) Date Of Borrower Signing. The calendar date when the Lender’s signature was submitted should be documented at the time of signing as required by the adjacent line (“Date”).
