Hospitality Accounting Exam

Hospitality Accounting Exam

Hospitality Accounting

Just did a Hospitality Accounting Exam and maybe these notes will be helpful to someone.

Solvent - able to pay debts

Insolvent - not able to pay debts

Guest folio - individual room accounts

Hotels have two kinds of accounts: guests - people who stay / city - people who stay regularly like businessmen

Source documents (9) - what bookkeepers use to credit and debit accounts.

Night auditor - checks to see accuracy (auditing) of goods vs. Checks

Payroll (14)

Budgets (16)

Operating budget done in 12 month incraments - 1. Decided net income 2. Dixed expenses 3. Variable expenses 4. Revenues and cost of sales

Variable expenses (17) - chaanges as volumes of sales changes

Bottom-up approach (17) - review past accounts to decided what is needed for future

ROI - return on investment

Ratios (28)

Current ratio - divide current assets by current liabilities

Acid test ration - totalling all cash and cash receivable then divide by current liabilities

Inventory turnover ratio - multiply cost of goods sold by 4 - then divide by average value for three month period (29)

Room occupancy percentage (30)

Standard costs (31)

Average costs (31) number of covers (meals) served to know how many employees needed for a period