Summary Basic Management Accounting for the Hospitality Industry Book cover image

Summary Basic Management Accounting for the Hospitality Industry

- Michael N Chibili
ISBN-10 9001796354 ISBN-13 9789001796358
161 Flashcards & Notes
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A snapshot of the summary - Basic Management Accounting for the Hospitality Industry Author: Michael N Chibili ISBN: 9789001796358

  • 2 The balance sheet 31

  • The balance sheet shows the balance between 2 different factors, which ones?

    The balance between the assets of an organization with its liabilities and owners equity

  • 3 The profit and loss account statement 51

  • Why is it important for the stakeholder to know the profit?

    To see how the company is performing

  • The profit and loss account statement shows..

    The flow of activities an transactions between revenues and net income

  • As not all departments are revenue generating epartments in a company, certain categories of expenses are generated by epartments that are called service departments. A service department generally supports the profit centres in their revenue generating activities. There are generally 4 categories in this section of ..... 

    Undistributed operating expences

  • Which 4 categories does undistributed operating expenses have?

    administrative and general expenses

    sales and marketing expenses

    property and operations maintenance expenses

    utility expenses

  • A standardized systemof accounting used by the lodging industry that provides easy comparison with similar business operations and improves decision making is called

    USALI (Uniform system of accounts for the lodging industry

  • 5 The cash flow statement (also called the statement of cash flow) 75

  • Which categories of activities do we have? (SCF)

    Operation activities, investing activities and financing actvities

  • What is an operating activity?

    cash inflows and outflows linked to primary activity of the organization. For example cash inflows: Sale of food, beverages and other goods. and cash outflows: payments for inventory, salaries, wages, taxes and interests.

  • What are financing activities?

    Relate to anything that has an impact on the long term financing of the organization. Examples: issues of shares, payments and dividends.

  • 6 Analyzing financial statements 93

  • 6.2 Horizontal analysis 99

  • In which two forms are analysis expressed?

    Absolute and Relative. Absolute gives the changes in amounts and relative the changes in percentage. 

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