Accounting CH 1 + 2
- Accounting is the process of recording financial transactings, summarizing them and
then accurately reporting them. (selling something to the guest, keep the receive for
accounting)
- Accountant is a person skilled in the recording and reporting of financial transactions
- Banks want to know about the proposed business’s estimated financial performance
before they decide to lend it money
- Owners of a hospitality facility want to monitor their business’s financial condition
(they want to know how they profit, what is the turnover what are there costs etc. )
- Investors want to put their money in businesses that wil conserve or increase their
wealth
- Managers use accounting techniques as well as their education, experience ,values
and goals to make management decisions
Accounting is not the same as management; accounting is a tool used by good managers.
Brance Purpose
Financial Record financial transactions- the different
between the revenue and your expenses is
your profit, when the expenses are higher
you have loss. (income statement)
Cost Identify and control costs
Tax Compute taxed due
Auditing Verify accounting data and procedures
Managerial Make management decisions using
accounting information
Balancesheet/ statement of financial position
Things that you own – company car, your coffee beans, thing you generate revenue with.
Is called ASSET
LIABILITIES- is the amount the business ow’s to others (you have to pay them later for the
product you use or had use.
OWNERS EQUITY- Which is the claims owners have on their invested capital and profits
that have not been paid out to the owners.
Assets= liabilities + owner’s equity
(is called: basic accounting equation) = GELIJKMAKING
Cost accounting is concerned with the classification, recording, and reporting of business
expenses (=costs)
Tax accounting concerns itself with the proper and timely filing of tax payments, forms, or
other required documents with the governmental units that assess taxes
,Auditing is the process in which (external) professionals are verifying accounting data and
procedures (people check of the accounting, books etc. are good and checked. )
There are two ways to register date; one for restaurant industry, one for lodging industry
Calculation sheet:
1. Contribution margin Selling price – product cost
2. Product cost % cost of goods sold/revenue
3. Sales break-even point fixed costs/ contribution margin%
4. Occupancy % rooms sold/ rooms available for sale X 100%
5. Product yield % EP weight/ AP weight
6. Check average total sales/ number of guest served
7. RevPAR room revenue/ rooms available
8. Cost of goods sold Beginning inventory + purchases – ending inventory
9. Profit margin net income/total sales
10. ADR room revenue/ rooms sold
11. Product cost percentage Restaurant cost of goods sold/restaurant revenueX100%
12. Property’s profit margin property net income/ property total sales X100%
P.17 in the book has all caltulations!
RevPAR = ADR X OCC rate
CHAPTER 2
Assets = bezit- wine glasses, coffee cups etc.
Liabilities = schulden
Equity = (eigen) vermogen
Account payable = crediteuren, you can pay the bill within 30 days for example
Account receivable = debiteuren, someone else has to pay you something within a amount
of days.
, Start balance example easy.
Difference between bookkeeper and accounting
Bookkeeper: controller, waitress, chef, FO employee, everyone who works in the system.
Accounter: checks the system, date and collect reports
The balance sheet is an accounting summary that closely examines the financial condition of
a business, by reporting the value of a company’s total assets, liabilities and owner’s equity
on a specified date.
Income statement = winst & verlies rekening
- Accounting is the process of recording financial transactings, summarizing them and
then accurately reporting them. (selling something to the guest, keep the receive for
accounting)
- Accountant is a person skilled in the recording and reporting of financial transactions
- Banks want to know about the proposed business’s estimated financial performance
before they decide to lend it money
- Owners of a hospitality facility want to monitor their business’s financial condition
(they want to know how they profit, what is the turnover what are there costs etc. )
- Investors want to put their money in businesses that wil conserve or increase their
wealth
- Managers use accounting techniques as well as their education, experience ,values
and goals to make management decisions
Accounting is not the same as management; accounting is a tool used by good managers.
Brance Purpose
Financial Record financial transactions- the different
between the revenue and your expenses is
your profit, when the expenses are higher
you have loss. (income statement)
Cost Identify and control costs
Tax Compute taxed due
Auditing Verify accounting data and procedures
Managerial Make management decisions using
accounting information
Balancesheet/ statement of financial position
Things that you own – company car, your coffee beans, thing you generate revenue with.
Is called ASSET
LIABILITIES- is the amount the business ow’s to others (you have to pay them later for the
product you use or had use.
OWNERS EQUITY- Which is the claims owners have on their invested capital and profits
that have not been paid out to the owners.
Assets= liabilities + owner’s equity
(is called: basic accounting equation) = GELIJKMAKING
Cost accounting is concerned with the classification, recording, and reporting of business
expenses (=costs)
Tax accounting concerns itself with the proper and timely filing of tax payments, forms, or
other required documents with the governmental units that assess taxes
,Auditing is the process in which (external) professionals are verifying accounting data and
procedures (people check of the accounting, books etc. are good and checked. )
There are two ways to register date; one for restaurant industry, one for lodging industry
Calculation sheet:
1. Contribution margin Selling price – product cost
2. Product cost % cost of goods sold/revenue
3. Sales break-even point fixed costs/ contribution margin%
4. Occupancy % rooms sold/ rooms available for sale X 100%
5. Product yield % EP weight/ AP weight
6. Check average total sales/ number of guest served
7. RevPAR room revenue/ rooms available
8. Cost of goods sold Beginning inventory + purchases – ending inventory
9. Profit margin net income/total sales
10. ADR room revenue/ rooms sold
11. Product cost percentage Restaurant cost of goods sold/restaurant revenueX100%
12. Property’s profit margin property net income/ property total sales X100%
P.17 in the book has all caltulations!
RevPAR = ADR X OCC rate
CHAPTER 2
Assets = bezit- wine glasses, coffee cups etc.
Liabilities = schulden
Equity = (eigen) vermogen
Account payable = crediteuren, you can pay the bill within 30 days for example
Account receivable = debiteuren, someone else has to pay you something within a amount
of days.
, Start balance example easy.
Difference between bookkeeper and accounting
Bookkeeper: controller, waitress, chef, FO employee, everyone who works in the system.
Accounter: checks the system, date and collect reports
The balance sheet is an accounting summary that closely examines the financial condition of
a business, by reporting the value of a company’s total assets, liabilities and owner’s equity
on a specified date.
Income statement = winst & verlies rekening
