Culinary Quiz

1. When stocktaking, the method of valuation may be FIFO or LIFO. What does this mean?

2. How does a 20% gross profit differ from a 20% mark-up on an item costing £80?

3. What does the tax term PAYE mean and who will normally pay it?

4. If you receive payment from a customer by means of a cheque and it is returned to you marked R/D, what does this mean?

5. If, at a meeting with your bank manager, he refers to liquid assets, is he enquiring about the level of booze you are holding in stock?

6. A piece of equipment which the restaurant owns is an asset and will be said to have a net book value. Is this the cost of replacing the item?

7. What is a trial balance?

8. Is a hotel business solvent if the money it owes is less than the total value of its assets?

9. The ingredients used to produce the items on the menu are strictly governed by portion control. Would these items be classed as fixed or variable costs?

10. Many restaurants and public houses get into financial difficulties, due to a lack of working capital. What is working capital?

11. Is "management by exception" a term used by personnel when referring to a particularly unpleasant supervisor?

12. As of this year, businesses are required to operate a self-assessment tax system. Does this mean the owners must prepare the tax returns themselves?

13. Goodwill often forms part of the purchase price of any catering business. Over what period is it normal for this to bewritten off?

14. Accountants often refer to the accruals convention.What is it?

15. What is the connection between a responsibility centre and a profit centre?

lAnswers to the quiz are on page 74.