HM_HOSP 124 (AHLA 261): Basic Hotel and Restaurant Accounting

What Will You Learn?

• Describe the Accounting process and the roles that accountants play in collecting and presenting Financial information
• Define the major classifications of Accounts (assets, liabilities, equity, revenue, and expenses) and describe specific accounts found within each classification
• Understand the correct application of Debits and Credits by analyzing Business transactions for a variety of Accounting situations
• Discuss the basis of the Double-entry accounting system and identify the normal balances of the various types of accounts
• Describe the Posting, Journalizing, and Closing processes
• Identify the purposes and characteristics of specialized Journals and Subsidiary ledgers
• Discuss the advantages and disadvantages of the Sole proprietorship, the Partnership, the Corporation, and the S corporation, and describe the Compare accounting procedures for each
• Discuss generally accepted Accounting principles and explain the usefulness of each
• Distinguish between Cash basis accounting and Accrual accounting
• List procedures that help ensure Internal control of a Firm's cash
• Discuss how Hospitality firms account for bad debt losses
• Describe Accounting procedures involved in Notes receivable and Notes payable
• Discuss methods of Controlling and Accounting for inventory
• Identify and define the major classifications of Adjusting entries reversing entries
• Define ten steps of the Accounting cycle
• Describe the Balance sheet, the Income statement, the Statement of owners' equity, the Statement of retained earnings, and the Statement of cash flows, and discuss the purposes of each
• Identify the uniform systems of accounts relevant to the Hospitality Industry
• Explain the purposes of Footnotes to Financial statements
• Identify and describe commonly used Depreciation methods
• Describe Accounting procedures used for property, equipment, intangible assets, and other assets
• Describe procedures used to Account for current Liabilities and Payroll
• Explain why Hospitality firms invest in the securities of other Companies, and discuss Accounting for investments
• Identify the kinds of information obtained through vertical and horizontal analyses of comparative Balance Sheets and comparative Income Statements
• Explain Ratio analysis and the purposes that it serves for managers, creditors, and investors
• Identify and define five classes of ratios and explain their significance