Read the summary and the most important questions on Hotel Accounting

• 1 Introduction to Accounting

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• Decision makers internal and external

  Internal: Managers, directors, sales staff, internal auditors
  External: investors, creditors, customers, government

• 1. Chapter 1Which of the following is an example of an internal user of a hospitality business’s financial information?a.  the business’s board of directorsb.  department managersc. the general managerd.    All of the above

  d.    All of the above

• 3 kinds of Business transactions:

  1. Purchases and sales transactions
     
  2. Account payable
  3. Account receivable

• Guest enjoys a dinner at a restaurant And pays with cash

  • Cash received increases the assets of the restaurant
  • A sale is made
  • Cash and Food Sales   

• A guest enjoys a dinner at a restaurant On credit (on account)

  • Account receivable
  • Food Sales 

• 2 Business Formation, Taxation and Insurance

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• 2 types of capital stock:

  1. Common stock
     
  2. Preferred stock

• Common stockOwners common stock rights:

  • The right to receive dividends when they are declared by the board of directors
    
  • Right to vote for the board of directors on certain important corporate issues

• Taxation of business incomePartnershipincome taxes

  Each partners pays tax with personal income
  Self employment tax: social security and medicare tax

• Taxation of business incomeCorporation  income taxes  

  The business pays the income taxes
  Corporations treated as partnerships for tax purposes: Stockholders will pay the taxes

• Property damage insurance

  Protects the business against direct losses to its property due to fire, theft, accidents (vehicles, buildings, contents)