Where would you find accounts receivable and credit card authorizations?

• A. Front Office
• B. Rooms Management
• C. Night Audit
• D. Back Office

Answer: (D)

The main idea being tested is where financial transactions and accounting tasks are centralized in a hotel operation. Accounts receivable and credit card authorizations are financial controls that belong in the accounting area to maintain proper posting, reconciliation, and audit trails. The back office houses the accounting systems, handles the AR ledger, invoicing for corporate accounts, posting of payments, and the settlement of credit card batches, which is why this is the correct place for these functions. Night audit focuses on daily reconciliation and verification of revenue and postings, but the authority and management of AR and card authorizations live in the back office. Therefore, the back office is the appropriate location.