Hospitality Financial Accounting 2nd Edition
TO THE INSTRUCTOR
It is just as important for a hospitality manager to understand and manage financial resources as it is to manage human resources. Although accounting is not a simple subject, it is a much needed language in running any type of successful business.There is a reason why accounting is often referred to as the language of business. As instructors, it is important for us not only to teach this business language to our students but also to impart its importance in building and maintaining a healthy business. Hospitality Financial Accounting, Second Edition, presents financial accounting through a foundation of solid theories and practical step-by-step hospitality examples. We want to simulate a learning environment by providing examples in all facets of the hospitality industry that the students can identify with, relate to, and use to understand the impact of financial decisions on the business.
STUDENTS ARE THE KEY
Our goal for this second edition of Hospitality Financial Accounting is to make it an even more useful and effective text. Information was solicited from professors and students who have used the text, as well as practitioners in the industry. All effort has been made to thoroughly illustrate concepts in every chapter to reinforce the principles being discussed. Additionally, extensive examples are given to assist students in understanding the concepts; and demonstration problems with answers are provided for students to check their own level of comprehension, applications, and knowledge transfers.
It is important in working with hospitality students to always bear in mind that each student needs to be in the driver’s seat. The job of the professor is not to simply “profess” but to facilitate, to act as the conduit of knowledge, to present ideas and principles, and then to solicit students’ viewpoints to either confirm if correct or to lead students to the correct solution if they have made a mistake. It is important for all students to be exposed to all facets of this wonderful industry and to learn to speak the language of business.
ORGANIZATION OF THE SECOND EDITION
Students and professors who used the first edition of Hospitality Financial Accounting commented very positively on the design and layout of the materials. There is always room for improvement; and based on feedback from the users of this text, there is now a dedicated chapter on financial statement analysis. The text remains organized so that the student learns the basics of financial accounting first. Students are taken through the entire accounting cycle, but now they put that information together to analyze a set of financial statements. In addition, it is important for students to know how to perform some basic analysis to determine the financial health of a business. Hospitality Financial Accounting, Second Edition, also presents financial accounting in three major sections: the accounting cycle, financial statements and analyses, and the use of financial accounting data. The first five chapters focus on understanding an accounting cycle, from analyzing transactions to recording, posting, trial balance, and adjustments, all the way to closing and postclosing trial balance. The second section focuses on the makeup and analyses of financial statements. These chapters are placed right after the accounting cycle in the first section in order to take accounting to the next logical step. The final section of the text stresses the various daily issues faced by the hospitality owner or operator, from how one should structure one’s company to start a business, to cash and inventory controls, to paying bills and collecting receivables in a timely fashion.
The information on subsidiary ledgers and special journals is now presented in an appendix to the book. It is important for students to know about such journals in order to understand and use computer software to assist in their accounting work, as well as to understand the workings behind the scene. Most important, if a computerized system goes down, the knowledge base is there to recreate the transactions by following the paper trail.
TO THE INSTRUCTOR
STUDENT OWNER’S MANUAL
1 Hospitality Accounting in Action 1
2 Accounting Principles 30
3 The Recording Process 66
4 Adjusting the Accounts 102
5 Completion of the Accounting Cycle 136
6 Financial Statements 168
7 Financial Statement Analysis 204
8 Accounting for Merchandising Operations in Hospitality 232
9 Inventories and Cost of Goods Calculation 260
10 Internal Control and Cash 288
11 Payroll 318
12 Accounting for Receivables and Payables 346
13 Long-Term and Intangible Assets 380
14 Sole Proprietorships, Partnerships, and Corporations 410
Specimen Financial Statements: PepsiCo, Inc. 454
Subsidiary Ledgers and Special Journals 482
|September 14, 2017
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