RevPar Can Be Calculated by Multiplying the Occupancy Percentage by the ADR

question 25

True/False

RevPar can be calculated by multiplying the occupancy percentage by the ADR.

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Definitions:

Statement of Cash Flows

A document that explains how fluctuations in balance sheet accounts and income streams affect cash and cash equivalents, dividing the analysis among operating, investing, and financing operations.

Capital Cost Allowance (CCA)

CCA is the tax deduction allowed in Canada for the depreciation of property used in a business or profession.

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives, reflecting the decrease in value over time.

Net Capital Spending

The amount spent by a company for maintaining or increasing the scope of its assets, minus any sales of fixed assets during the same period.