Scope of the text Hotel and Restaurant Accounting is a bona fide hospitality principles and systems text presenting topics such as hotel accounting, restaurant accounting, fast food accounting, and several introductory managerial accounting chapters. It is not a glorified accounting text posing as a hospitality accounting text.
This hospitality industry text is a product of recommendations from hospitality academia and hotel/restaurant industry executives. The text’s organized content and writing style is easily understandable by students, yet sufficiently comprehensive to provide the vocabulary and financial skills necessary to achieve success.
The text offers state of the art hospitality accounting; for example, a demonstrative example of computerized general ledger accounting is given full coverage with supporting documents and illustrations.
Hotel and Restaurant Accounting escalates hospitality accounting into the 21st century; presenting topics such as: Specialized accounting topics for hotels, restaurants and fast-food operations Forecasting, budgeting, financial analysis Credit cards, debit cards, petty cash, bank reconciliation, cashier’s report Computer processing procedures that replace obsolete manual procedures and forms Depreciation methods Cash Discounts Simple interest Compound/present values Governmental agencies and regulations
TODAY'S REQUIREMENTS OF ACADEMIA AND BUSINESS Today’s business technology and competitive environment demand much more from hospitality accounting texts than just focusing on the traditional methods of accounting. It is imperative that accounting is not treated as a glorified bookkeeping course.
Debits and credits, journalizing, and lackluster accounting processes are not enough to meet today’s business and employer standards. Computers, point-of-sale devices, the Internet, and other technology are essential components of the hospitality industry.
It is critical that accounting texts realize and accentuate the interrelationship of business principles and accounting. This text positively accomplishes this necessary and up-to-date requirement.
Highlights of the Text --- There are 17 Chapters to the text: Scroll down this page to Table of Contents --- Every chapter has a case study: Scroll down this page to Case Studies --- Detailed chapter information is available: Scroll down this page to Representative Chapter Topics --- Each chapter concludes with Internet Site references for further topical research and study
TABLE OF CONTENTS Chapter 1 Accounting: A Management Resource 2 Business Formation: Important Decisions 3 Survey of Financial Statements 4 Exploring the Balance Sheet 5 Exploring the Income Statement 6 The Bookkeeping Process 7 Computerized Accounting System: An Introduction 8 Computerized Accounting Cycle: A Demonstration 9 Restaurant Accounting and Financial Analysis 10 Hotel Accounting and Financial Analysis 11 Depreciation and Amortization Methods 12 How to Analyze Hospitality Financial Statements 13 Annual Report to Shareholders 14 Credit and Debit Cards 15 Introduction to Budgeting and Forecasting 16 Internal Control of Cash 17 Business Math Topics for Hospitality Managers
Representative Chapter Topics Chapter 1: ACCOUNTING: A MANAGEMENT RESOURCE The Necessity for Accounting Why Study Accounting What is business accounting? Why financial statements are necessary The corporate accounting department Business transactions Accounting equation Financial statements Accounting income vs. taxable income The accounting profession The certified public accountant Influence of government and professional organizations Generally accepted accounting principles Ethics Case Study: Seeking Employment Internet Reference Sites Key Terms Review Questions and Problems
Chapter 2: BUSINESS FORMATION: IMPORTANT DECISIONS Feasibility Study Legal business structure Taxation of business income Buying a Franchise Appendix: Sample Filing Instructions and Articles of Incorporation Ethics Case Study: Applying for a Bank Loan Internet Reference Sites Key Terms Review Questions and Problems
Chapter 3: SURVEY OF FINANCIAL STATEMENTS Basic Financial Statements Introduction Statement of Income Equity Statements Balance Sheet Statement of Cash Flows Ethics Case Study: Principles of Utilitarianism, Rights, and Justice Internet Reference Sites Key Terms Review Questions and Problems
Chapter 4: EXPLORING THE BALANCE SHEET Preparation of the Balance Sheet Asset Classification Current Asset Accounts Noncurrent Asset Accounts Liability Classification Current Liability Accounts Long-term Liability Accounts Bonds Proprietorship Equity Accounts Partnership Equity Accounts Corporation Equity Accounts Limited Liability Company Equity Accounts Ethics Case Study: Dishonesty in a class examination Internet Reference Sites Key Terms Review Questions and Problems
Chapter 5: EXPLORING THE INCOME STATEMENT Preparation of the Income Statement Revenue Classification Sales Accounting Expense Classification Cost of Sales Expense Inventory Systems Other Business Expenses Depreciation Ethics Case Study: Skimming business revenue Internet Reference Sites Key Terms Review Questions and Problems
Chapter 6: THE BOOKKEEPING PROCESS Origins of Bookkeeping 21st Century Bookkeeping Bookkeeping Accounts Learning Debits and Credits Analyzing Business Transactions The Nature of Debits and Credits Recording 21 Universal Transactions Contra Accounts Normal Account Balance Ethics Case Study: Fraudulent financial information Internet Reference Sites Key Terms Review Questions and Problems
Chapter 7: COMPUTERIZED ACCOUNTING SYSTEM: AN INTRODUCTION Advantages of Computerized Systems Input Forms Output Forms Online Accounting System Features of Accounting Packages Standard General Ledger Modules Selecting General Accounting Packages Ethics Case Study: Taking credit for a system's benefit that is the work of someone else Internet Reference Sites Key Terms Review Questions and Problems
Chapter 8: COMPUTERIZED ACCOUNTING CYCLE: A DEMONSTRATION Accounting Cycle Cash Basis Accounting Accrual Basis Accounting Tower Restaurant: A Computerized Demonstration Conversion from Manual to Computerized System Setting up the Computer Chart of Accounts Computer Input of Account Balances Journalizing the Monthly Business Transactions Computerized Posting of the Special Journals End-of-Month Accounting Working Trial Balance Adjusting Entries Computation of Net Income or Loss Computerized Financial Statements Computerized General Ledger Reversing Entries Computerized Year-End Accounting Post-Closing Trial Balance Appendix A: Preparing a manual worksheet Appendix B: Reversing Entries Ethics Case Study: Purchase of a computer Internet Reference Sites Key Terms Review Questions and Problems
Chapter 9: RESTAURANT ACCOUNTING AND FINANCIAL ANALYSIS Restaurant Income Statement Special Bookkeeping Accounts Fast Food Restaurants Employee Meals and Officers' Checks Perpetual and Periodic Inventory Systems Operating Expenses Direct Operating Expenses Occupancy Expenses Other Income Restaurant Balance Sheet Food and Beverage Ratio Analysis Food Sales Statistics and Analysis Appendix: Sample Chart of Accounts: Uniform System of Accounts for Restaurants Ethics Case Study: Discrepancy in financial statement workpapers Internet Reference Sites Key Terms Review Questions and Problems
Chapter 10: HOTEL ACCOUNTING AND FINANCIAL ANALYSIS Income Statement for Stockholders and Other External Users Revenue Section of the Income Statement Expense Section of the Income Statement Income Statement for Internal Users Revenue Section of the Summary Operating Statement Departmental Expenses Undistributed Operating Expenses Management Fees Fixed Charges Net Operating Income Replacement Reserves Adjusted Net Operating Income The Income Statement Package for Internal Users Samples of Departmental Statements Operating Ratios Hotels with Casino Departments Statement of Gaming Operations Internet Reference Sites Key Terms Review Questions and Problems
Chapter 11: DEPRECIATION AND AMORTIZATION METHODS Depreciation defined and its applicability Straight-Line Method Declining Balance Method MACRS Depreciation FASB vs. IRS Depreciation Methods Amortization IRA vs. FASB Regarding Intangible Assets Ethics Case: Company President directs Treasurer to change accounting practice Internet Reference Sites Key Terms Review Questions and Problems
Chapter 12: HOW TO ANALYZE HOSPITALITY FINANCIAL STATEMENTS Financial Statement Package Notes to Financial Statements Accountant's Letter The Money Illusion Revenue, Expenses, and Net Income Assets, Liabilities, and Equity Overview of Analytical Methods The Income Statement Reading the Income Statement Common-Size Analysis Comparative Analysis Ratio Analysis The Balance Sheet Reading the Balance Sheet Common-Size Analysis Comparative Analysis Ratio Analysis Statement of Cash Flows Reading the SCF Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Ethics Case: Submitting false statistics to an industry association Internet Reference Sites Key Terms Review Questions and Problems
Chapter 13: ANNUAL REPORT TO SHAREHOLDERS Governmental Authority on Reporting by Public Companies The SEC The Sarbanes-Oxley Act of 2002 Annual Report to Shareholders: An Overview Letter to the Shareholders Financial Statements Notes to the Financial Statements Management Assessment of Internal Controls Report of Independent Public Accountants CEO and CFO Certification of the Annual Report Case Study: Preparation of an Annual Report to Shareholders Internet Reference Sites Key Terms Review Questions and Problems
Chapter 14: CREDIT and DEBIT CARDS Evaluating Credit Card Acceptance Processing Credit Card Transactions: The Merchant Account Selling on the Internet Getting a Merchant Account Point-of-Sale Systems Components of a Point of Sale System Real Time Credit Card Processing Payment Gateways Credit Card Fraud Authorization and Authentication Cardholder Disputes and Chargebacks Reserve on Holdback Merchant Account Fees and Charges Case Study: Principles of Credit Card Processing and Credit Card Fraud Internet Reference Sites Key Terms Review Questions and Problems
Chapter 15: INTRODUCTION TO BUDGETING AND FORECASTING What is a Budget? The Budgeting Process Assembling a Budget Budgeting Guidelines Sales Forecasting Forecasting Considerations for a New Business Forecasting Considerations for an Existing Business Percentage Method of Forecasting Sales Forecasting Rooms Sales Forecasting Food Sales The Relationship of Expenses to Volume Total Cost Equation Variable Expenses Budgeting a Variable Expense Fixed Expenses Budgeting a Fixed Expense Semi-Variable Expenses Budgeting a Semi-Variable Expense Breakeven Point Profit Target Case Study: Budgeting- Planning Preparation, and Implementation Internet Reference Sites Key Terms Review Questions and Problems
Chapter 16: INTERNAL CONTROL IF CASH Definition and Objectives of Internal Control Internal Control of Cash Receipts Cashiers Daily Report Internal Control of Cash Disbursements Bank Reconciliation Bank Statement Reconciling Items Case Study: Ethics: Ideological, operational, ignorance and cynicism Internet Reference Sites Key Terms Review Questions and Problems
Chapter 17: BUSINESS MATH TOPICS FOR HOSPITALITY MANAGERS Interest Expense Cash Discounts Net, ROG, EOM, PROX Freight Charges Extended Cash Discount Terms Compound Value Present Value Compound and Present Values with Annuities Case Study: Purchase Discount and Vendor Selection Internet Reference Sites Key Terms Review Questions and Problems