Table of Contents-Hospitality
Chapter 1 - Introduction to Hospitality Accounting
Characteristics of the Hospitality Industry
Hotel Organizational Structure
The Controller Job Description
Decisions Requiring Accounting Information
Financial and Managerial Accounting
The Structure of this Book
Chapter 2 - The System of Accounting
Financial Accounting Basics
Accounting Frameworks
Accounting Principles
The Accounting Cycle
Accounting Transactions
Types of Transaction Cycles
Source Documents
Double Entry Accounting
The Accounting Equation
Journal Entries
The Accruals Concept
The Chart of Accounts
Major Journal Entries
The Ledger Concept
Posting to the General Ledger
General Ledger Overview
The Trial Balance
The Trial Balance Format
The Extended Trial Balance
The Realization Concept
Accrual Basis of Accounting
Cash Basis of Accounting
Converting Cash Basis to Accrual Basis Accounting
Chapter 3 - The Financial Statements
Income Statement Overview
The Single-Step Income Statement
The Multi-Step Income Statement
The Multi-Period Income Statement
Hospitality Income Statement Format
The Balance Sheet
The Common Size Balance Sheet
The Comparative Balance Sheet
The Statement of Cash Flows
The Direct Method
The Indirect Method
Limitations of the Financial Statements
Chapter 4 - Receivables and Payables Accounting
Accounting for Accounts Receivable
Accounting for Deposits
Accounting for Cash Sales
Remitting Sales Taxes
The Accounts Receivable Aging Report
Calculating and Recording Bad Debts
Direct Write-Off Method
Allowance for Doubtful Accounts
Accounting for Accounts Payable
Accounting for Petty Cash
Petty Cash Transfer Form
Petty Cash Voucher
Petty Cash Book
The 1099 Vendor
Chapter 5 - Payroll Accounting
Employee Time Tracking
Gross Pay Calculations
Hourly Rate Plan
Overtime
Tips
Types of Payroll Taxes
Social Security Tax
Medicare Tax
Unemployment Taxes
Income Tax Withholdings
Benefits and Other Deductions
Net Pay
Remitting Payroll Taxes
Types of Tax Deposit Schedules
Monthly Deposit Schedule
Semiweekly Deposit Schedule
Federal Unemployment Deposit Schedule
Remittance Method
The Form 941 Quarterly Federal Tax Return
State Tax Remittances
Payments to Employees
The Payroll Register
Form W-2
Payroll Journal Entries
Types of Payroll Journal Entries
Primary Payroll Journal Entry
Accrued Wages
Manual Paycheck Entry
Employee Advances
Accrued Vacation Pay
Tax Deposits
Chapter 6 - Inventory Accounting
The Periodic Inventory System
The Perpetual Inventory System
The Physical Inventory Count
Inventory Cost Layering Overview
The First in, First Out Method
The Last in, First Out Method
The Weighted Average Method
Estimating Ending Inventory
Gross Profit Method
Retail Inventory Method
Cost of Food Consumed
Cost of Sales Account Classifications
Chapter 7 - Fixed Asset Accounting
What are Fixed Assets?
Fixed Asset Classifications
Accounting for Fixed Assets
The Capitalization Limit
The Base Unit
The Initial Measurement of a Fixed Asset
The Purpose of Depreciation
Depreciation Concepts
Accelerated Depreciation
Sum-of-the-Years’ Digits Method
Double-Declining Balance Method
Straight-Line Method
Units of Activity Method
MACRS Depreciation
The Depreciation of Land
The Depreciation of Land Improvements
Depreciation Accounting Entries
Accumulated Depreciation
Asset Derecognition
Abandoned Assets
Asset Disposal Accounting
Chapter 8 - Interest Capitalization
Overview of Capitalized Interest
When to Capitalize Interest
The Interest Capitalization Period
The Capitalization Rate
Calculating Interest Capitalization
Chapter 9 - Debt Accounting
Basic Debt Accounting
The Amortization Schedule
Reconciling the Debt Account
Chapter 10 - Income Taxes
Sole Proprietorship Taxes
Partnership Taxes
C Corporation Taxes
S Corporation Taxes
Tax Reduction Strategies for Small Businesses
Chapter 11 - Other Accounting Topics
Startup Costs
Advertising Costs
Gift Cards
Chapter 12 - Controls
The Proper Balance of Control Systems
The Nature of Risk
Control Principles
The Failings of Internal Controls
Preventive and Detective Controls
Manual and Automated Controls
Constructing a System of Controls
Common Fraud Risk Factors
Hospitality Industry Risk Characteristics
Hospitality Industry Fraud
Specific Controls
Controls for the Small Organization
Chapter 13 - Pricing Methodologies
Price Elasticity of Demand
Cross Price Elasticity of Demand
Pricing Perception
Market-Based Pricing
Dynamic Pricing
Pricing Segmentation
Cost Markup Pricing (Meals)
Investment-Based Pricing (Room Rates)
Hubbart Formula (Room Rates)
Hubbart Formula (Meal Pricing)
Menu Engineering
Contribution by Meal Period
Discounting of Room Rates
Room Revenue Yield Analysis
Price Increase Considerations
Non-Profit Pricing
Chapter 14 - Ratio and Trend Analysis
Interpretation of Financial Statements
Horizontal Analysis
Vertical Analysis
Current Ratio
Quick Ratio
Accounts Payable Turnover Ratio
Accounts Receivable Turnover Ratio
Inventory Turnover Ratio
Fixed Asset Turnover Ratio
Sales to Working Capital Ratio
Debt to Equity Ratio
Fixed Charge Coverage
Net Profit Ratio
Return on Net Assets
Hotel Operating Ratios
Paid Occupancy Percentage
Complimentary Occupancy Percentage
Average Occupancy per Room
Average Room Rate
Revenue per Available Room
Revenue per Available Customer
Hotel Market Share
Restaurant Operating Ratios
Seat Turnover
Average Food Service Check
Ratio of Beverage to Food Revenue
Limitations of Ratio Analysis
Chapter 15 - Cost Concepts
The Economics of Cost Management
What is Cost?
Basic Cost Types
Fixed Costs
Variable Costs
Mixed Costs
Step Costs
Differential Costs
Discretionary Costs
Committed Costs
Sunk Costs
The Cost Allocation Conundrum
Advantages of Cost Management
Chapter 16 - Cost-Volume-Profit Analysis
Contribution Margin
Breakeven Point
Margin of Safety
Cost-Volume-Profit Analysis
Cost-Volume-Profit Cautions
Sales Mix
Chapter 17 - Operations Budgeting
The Advantages of Budgeting
The Disadvantages of Budgeting
The Operations Budget
Revenue Projections
Expense Projections
The Flexible Budget
Formulation of the Budget
The Long-Range Budget
Variance Analysis
Types of Variances
Selling Price Variance
Sales Volume Variance
Purchase Price Variance
Material Yield Variance
Labor Rate Variance
Operating without a Budget
Chapter 18 - Capital Budgeting
Overview of Capital Budgeting
Time Value of Money
Present and Future Value Tables
Cost of Capital Derivation
Cost of Debt
Cost of Preferred Stock
Cost of Common Stock
Weighted Average Cost of Capital
Net Present Value Analysis
Terminal Value
Internal Rate of Return
Incremental Internal Rate of Return
Profitability Index
Breakeven Analysis
Payback Method
Real Options
Capital Expenditure Proposal Analysis
Information Recordation
Separate Spreadsheet
Separate General Ledger / Subledger Accounts
Separate Accounting Module
Chapter 19 - The Lease or Buy Decision
The Lease Arrangement
The Lease or Buy Decision
Leasing Concerns
Leasing Advantages
Chapter 20 - Cash Management
The Difference between Net Income and Cash Flow
The Bank Reconciliation
The Daily Bank Reconciliation
The Cash Forecast
The Short-Term Cash Forecast
The Medium-Term Cash Forecast
The Need for Cash Concentration
Cash Sweeping
The Zero Balance Account
Multiple Sweep Arrangements
Sweeping Rules
Sweep Costs
Notional Pooling
Notional Pooling Problems
Notional Pooling Costs
Cash Concentration Best Practices
Cash Concentration Alternatives
Accounting for Cash Concentration Transactions
Investments
Accounting for Investments - Dividends and Interest Income
Stock Dividends and Stock Splits
Noncash Dividends
Chapter 21 - Working Capital Management
The Cash Conversion Cycle
Accounts Receivable Enhancements
Credit Enhancements
Billing Enhancements
Collection Enhancements
Accounts Receivable Policies
Inventory Enhancements
Inventory Policies
Accounts Payable Enhancements
Terms Renegotiation
Early Payment Discounts
Payment Processing Frequency
Accounts Payable Policies
Answers to Chapter Questions
Glossary
Index
EXAM………………………………………………………………………………………………………………327
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