Read the summary and the most important questions on Creating Business Value

• 1 Week 1 LU1 - LU3

• 1.1.1 LU2 Chapter 1: Accounting: a management Resource--> p3-16

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• Uniform System of Accounts for the Lodging Industry

  A book that spells out the guidelines for hospitality industry financial statements

• Structure of corporate Accounting department:

  • Chief financial officer (CFO)
    
  • Vice President of finance
  • Treasurer
  • Controller
  • Chief accountant
  • Accounting supervisor
  • Bookkeeping and skilled accountants

• Staff of accounting department:

  Bookkeepers and various levels of skilled accountants

• Accountants also work in specialized fields like...?

  • Budgeting and forecasting
    
  • Cost of accounting
  • Tax accounting
  • Internal auditing
  • Accounting systems design

• Certified Public Accountants (CPA)

  Provides services like taxation accounting, management consulting, and auditing of financial statements.

• All bookkeeping accounts have five classifications: (types of booking account)

  1. Asset
     
  2. Liabilities
  3. Equity
  4. Revenue (Incomes are also included)
  5. Expenses
     

• Consolidated financial statements

  Reports the financial results as if they represent a single business entity.

• 1.2 LU3 Chapter 4, p. 85-92

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• What does a Statement of Income look like (what is the order of accounts)?

  1. Revenue
     
  1. F&B Sales
  2. Total
  2. Cost of sales
  1. Food & liquor (beverage)
  2. Total
  3. Gross profit
  4. Operating Expenses
  1. Salaries/ wages
  2. Employee benefits
  3. China, glassware, and silverware
  4. Kitchen Fuel
  5. Laundry
  6. Credit Card Fees
  7. Operating Supplies
  8. Advertising
  9. Repairs and maintenance
  10. Total
  5. Income Before fixed charges and Income taxes
  6. Fixed charges
  1. Rent
  2. Property Taxes
  3. Depreciation and Amortization
  4. Total 
  7. Income before income taxes
  8. Income taxes
  9. Net Income

• Biggest contributors of Income Statements are...?

  Cost of Food Sales and Cost of Beverage Sales

• Annual financial statements

  Statements issued at the end of a business year