ACCOUNTING FOR HOSPITALITY MANAGERS, 5th Edition

A hospitality managerial accounting and hospitality financial management text.

The following is not intended to be  a complete listing of every topic in each chapter.  However, the topics listed do provide a satisfactory representation of each chapter's content.

Chapter 1: Hotel Revenue Accounting

• Revenue Centers & Accounts
• Trade & Cash Discounts
• Automated and POS Systems
• Internal Control for Food and Beverage Sales
• Accounting & Front Office Functions & Reports
• Daily Report of Revenue
• Internet Reference Sites
• Case Study: Sales Reporting and Internal Control for a Pizza Restaurant

Chapter 2: Hotel Expense Accounting

• Business Segmentation
• Financial Reporting Centers
• Responsibility Accounting
• Departmental Organization Charts
• Departmental Expense Accounts
• Accounting for Employee Meals
• Accounting for Credit Card Fees
• Bad Debts
• Internet Reference Sites
• Case Study: Investigative Fire Loss of Inventory

Chapter 3: Property & Equipment Accounting

• Acquisition Cost
• Operating Leases & Capital Leases
• Depreciation & Amortization Methods including MACRS
• Sale, Disposal, Trade-in
• Internet Reference Sites
• Case Study: Rationale for Leasing and Effect of Operating and Capital Leases

Chapter 4: Other Noncurrent Assets

• Intangible Assets
• Security Deposits
• Cash Surrender Value of Life Insurance
• Internet Reference Sites
• Case Study: Evaluating a Business Franchise Acquisition

Chapter 5: Hospitality Payroll Accounting

• Fair Labor Standards Act
• Gross Wages Calculation
• FICA and Income Taxes
• IRS 940 and 940 EZ
• W2
• Tipped Employees
• 8% Tip Regulation, Tips & Tip Credit
• Calculation of Time Worked, Gross Pay, Net Pay
• Tip Shortfall Allocation, Employee Tip Reporting
• Employer’s Payroll Taxes, Sample IRS Forms
• Internet Reference Sites
• Case Study: Computerized Hospitality Payroll System
• Appendix contains research reports on Labor Laws for Employers; Teen Labor Laws for Employers; Overtime Rules, Tip Reporting

Chapter 6: Hotel Departmental Statements

• Hotel Financial Information Systems
• Hotel Chart of Accounts (Uniform System)
• Departmental Statements, Formats & Examples
• Uniform System of Accounts for the Lodging Industry (USALI), 10^th revised edition
• Internet Reference Sites
• Case Study: Synthesis of Function and Structure: Departmental Reports
• Appendix: USALI Internal Income Statement and Sample Departmental Statements

Chapter 7: Hotel Income Statements

• Elements and Conventions
• Income Statement Formats and Examples
• Pie Charts, Common Size Analysis & Comparative Analysis
• Uniform System of Accounts for the Lodging Industry (USALI), 10^th revised edition
• Internet Reference Sites
• Case Study: Purpose and Preparation of a Pro Forma Income Statement
• Appendix: USALI External Income Statement and Sample Departmental Statements

Chapter 8: Ratio Analysis - Income Statement

• Departmental and Hotel Ratios
• RevPar
• Stock Valuation Ratios
• Internet Reference Sites
• Case Study: Critique of Hotel Income Statement

Chapter 9: Hotel Balance Sheet

• Elements and Conventions
• Internal & External Balance Sheets
• Common Size & Comparative Analysis
• Uniform System of Accounts for the Lodging Industry (USALI), 10^th revised edition
• Internet Reference Sites
• Case Study: Critique of a Balance Sheet
• Appendix: USALI Balance Sheet

Chapter 10: Ratio Analysis – Balance Sheet

• Liquidity, Asset Management, Debt Management
• Internet Reference Sites
• Case Study: Working Capital Management

Chapter 11: Statement of Cash Flows

• Cash and Cash Equivalents
• Format
• Preparation
• Demonstration Problem
• Internet Reference Sites
• Case Study: Statement of Cash Flows

Chapter 12: Interim & Annual Reports

• Audit, Review, and Compilation Services
• Consolidated Statements
• Governmental Authority on Reporting by Public Companies
• SEC
• Sarbanes-Oxley Act
• 10-K Report
• Report of Independent Public Accountant
• Annual Report to Shareholders
• Internet Reference Sites
• Case Study: Preparation of Annual Report to Shareholders

Chapter 13: Budgeting Expenses

• Variable, Fixed, Semi-variable Expenses
• Strategies for Budgeting Variable, Fixed, SV expenses
• High-Low Method
• Regression Analysis Method (Computerized & Manual)
• Break-even Point
• Contribution Margin
• Profit Target
• Effect of Volume & Price Increases on Costs
• Internet Reference Sites
• Case Study: Budgeting Expenses and Breakeven Analysis

Chapter 14: Forecasting Sales

• Increase Prices or Increase Volume Enigma
• Moving Average Method
• Percentage Method
• Statistical Models
• Calculating Average Room Rate
• Hubbart Formula
• Contribution Margin and CM%
• Sales Mix
• CVP Method
• Internet Reference Sites
• Case Study: Forecasting Beverage Sales

Chapter 15: Budgetary Reporting & Analysis

• Zero-Base Budgeting
• Operations Budget
• Master Budget
• Flexible Budgets
• Variance Analysis
• Capital Budgeting Synopsis
• Internet Reference Sites
• Case Study: Budget Installation: A Management Critique

Chapter 16: Financial Decision Making

• Contributory Income Statement Format
• Off-season Analysis: Qualitative & Quantitative Considerations
• Acquiring a Business
• Covenant Not to Compete
• Hazards in Using Seller’s Financial Statements
• Skimming Claims by Seller
• Importance of Seller’s Legal Form of Organization
• Purchase of a Proprietorship, Purchase of a Corporation
• Treatment of Acquired Assets (Corporate Stock and Asset Method)
• Purchasing a Family-Operated Business
• Impact of Financing on Profits and Cash
• Selecting an Enterprise from a Number of Choices
• Buying a Franchise
• Leasing of Realty, Leasing of Automobiles, Gap Insurance
• Closed & Open-end Leases
• Calculating the Monthly Lease Payment
• Capital Budgeting (ARR & Payback)
• Internet Reference Sites
• Case Study: An Entrepreneurial Endeavor

Chapter 17: Cash Management and Planning

• Cash and cash flow, Cash Inflows and Outflows, Cash Flow Analysis
• Cash Management
• Profit Does Not Represent Increase to Cash
• Cash Management Vocabulary
• Benefits of Cash Management
• Developing the Cash Management Data
• Cash Flow Demonstration Case
• Cash Management Tools to Maximize Cash Flows & Returns: Cash Float, Acceleration of Cash Deposits
• Management of Excess Funds: Zero Balance Account (ZBA), Sweep Account
• Misleading Measures of Cash Flow
• EBITIDA vs. EBITDA
• Internet Reference Sites
• Case Study: Budgeted Income Statement and Cash Flow Analysis
• APPENDIX: Adjusted Net Income Approach

Chapter 18: Casino Accounting

• History of Gambling
• Present Synopsis of Gaming
• Industry Demographics
• Gaming Associations
• Commercially Owned Casinos
• Indian Owned Casino
• Racinos
• Casino Games
• Baccarat
• Blackjack
• Craps
• Keno
• Roulette
• Slot machines
• Role of Accounting in Casinos
• Principles of Casino Accounting and Internal Control
• Money, Chips, and Controls
• Markers and Foreign Chips
• Basic Cage Cashiering Controls
• Slot Machine Controls
• Table Game Controls
• Count Room Controls
• Vault Room Controls
• Hamdle, Win, Drop
• Principles of Casino Financial Accounting
• Gaming Revenue
• Accounting for Nonprogressive, Progressive, Participating Slots
• Financial Statements 
• Complimentary Items and Allowances
• Payroll and Other Expenses
• Internet Reference Sites
• Case Study: Casino Financial Accounting System

Chapte19: Inventory Accounting

• Inventory Valuation
• Gross Profit Estimating Method
• Specific ID, FIFO, LIFO, Weighted Average Methods
• Periodic & Perpetual Methods
• Internet Reference Sites
• Case Study: Inventory Management and Theft Deterrence

Chapter 20: Assorted Topics

• Feasibility Study
• Goal of Feasibility Study
• Format of Feasibility Study
• Proposal Letter
• Opening Section of the Feasibility Report
• Description of Market Area
• Evaluation of Area and Project Site.
• Analysis of Competition
• Demand Analysis
• Recommend Facilities and Services
• Estimated Income Statement
• Allocating service departments and fixed charges to revenue centers
• Fair Value Accounting
• Fair Value Accounting Defined
• FASB Statement 157
• How Fair Value Accounting Improves Financial Reporting
• Measurement of Fair Value
• Transition Adjustment
• Limitation of Fair Value Accounting
• Compound Value
• Present Value
• Compound Value of an Ordinary Annuity
• Compound Value of an Annuity Due
• Present Value of an Ordinary Annuity

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