LU5 + LU6 - LU5: The bookkeeping process - and pages 144

5 important questions on LU5 + LU6 - LU5: The bookkeeping process - and pages 144

4 steps of Analysing transactions

  1. Identify the NAMES of the accounts that are affected
  2. Identify the EFFECT of the transactions on the accounts
  3. Identify the TYPE of accounts that are affected
  4. Identify the DEBIT and CREDIT entries

Double Entry Accounts

Which side does each account go.

Gross Operating Profit

The level of profit that is measured after all expenses of the operating departments and the undistributed operating expenses are deducted from the total revenue
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Which tow instance have a decreasing affect on retained earnings?

  1. Net loss
  2. when dividends are declared

How can the knowledge of Accounting help managers?


  • helps them understand the financial information, which reflects the financial performance of the hotel
  • Will enable them to make a better decision   

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