Summary: Hospitality Accounting 1&2

Read the summary and the most important questions on Hospitality Accounting 1&2

• 1 Hospitality Industry Accounting 4q

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• What are Unique Aspects of the Hospitality Industry?

  Hotels, restaurants, clubs, resorts, casinos, cruise ships,
  theme parks, Recreation, and leisure, Convention centers,
  Schools and colleges, Business dining, Health care

• What is the Purpose of Accounting in the Hospitality Industry?

  Managers use accounting techniques among others to make management decisions.
  
  Owners of a hospitality facility want to monitor their
  business's financial condition.
  
  Banks want to know the business’s estimated
  financial performance before they decide to lend it money.
  
  Investors want to put their money in businesses that
  will conserve or increase their wealth.

• What are the five branches of accounting and what are their purpose?

  1. Financial: Record Financial Transactions
  
  2. Cost: Identifying and controlling costs
  
  3. Tax: Compute taxes due
  
  4. Auditing: Verify accounting data and procedures
  
  5. Managerial: Make management decisions using accounting info.

• What are the key characteristics of  financial accounting?

  Financial accounting includes recording, summarizing, and reporting
  financial transactions.
  
  Financial transactions include:
  Revenue, Expense, Profit, Assets, Liabilities and owner's Equity

• What is the diffrence between Revenue and profit?

  Revenue, the term used to indicate the money you take in
  Profit, the dollars that remain after all expenses have been paid

• What is the diffrence between assets and  liabilities?

  Assets, which are those items owned by the business
  Liabilities, are the amounts the business owes to others

• What are the key characteristics of Cost accounting?

  Cost accounting is concerned with the classification, recording, and
  reporting of business expenses.

• What are the key characteristics of Tax accounting?

  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.

• What are the key characteristics of auditing?

  Auditing is the process in which (external) professionals are verifying
  accounting data and procedures.

• What are the key characteristics of Managerial accounting?

  Managerial accounting is the system of recording and analyzing
  transactions for the purpose of making management decisions.
  
  Its proper use requires skill, insight, experience, and intuition.