Class notes Financial Accounting (BACC152)

Introduction to Financial Accounting

BACC 152
Humber College




What is accounting?

 Identifying
 Recording
 Communicating

Information and measurement system that identifies, records, and communicates relevant,
reliable, and comparable information about business activities in economic terms




Generally Accepted Accounting Principles (GAAP)

Refer to a common set of accounting principles, standards, and procedures issued by the
Financial Accounting Standard Board (FASB)


1. Business entity principle

Hospitality business and the owner are two separate “entities”
What does the business attempt to do
What does the owner attempt to do


Types of hospitality organizations
Sole proprietorship
● Hospitality business is owned by one person
● Unlimited liability (assume all risk)

Partnership
● Hospitality business is owned by two or more people (referred to as partners)

Corporation