Standard

Rev.09/03/03

HRT 104 - Hospitality Accounting

Course Description

Provides students with an opportunity to gain knowledge and acquire skills of accounting as applied to the hospitality industry. Emphasis is placed on how to administer accounting procedures to minimize cost and maintain a full range of customer services. Topics include: cash flow cycle, accounting principles and procedures, elements of financial statements, maintaining financial statements, and analysis of financial records.

Competency Areas	Hours
Cash Flow Cycle	Class	5
Accounting Principles and Procedures	D. Lab	0
Elements of Financial Statements	P. Lab/O.B.I.	0
Maintaining Financial Statements	Credit	5
Analysis of Financial Records

Prerequisite:	Provisional admission
Corequisite:

Course Guide

Competency	After completing this section, the student will:	Hours
		Class	D.Lab	P.Lab/ O.B.I.

CASH FLOW CYCLE		10	0	0
Cashier’s report	Discuss the content of a cashier’s report.
	Prepare a cashier’s report
Vouchers/petty cash	Discuss the content of vouchers.
	Prepare a voucher.
	Discuss the content of a petty cash receipt.
	Prepare a petty cash receipt.
Daily report	Discuss the content of a "D" report.
	Prepare a "D" report.
Bank statements	Discuss the contents of a bank statement.
	Discuss the procedure used in reconciling a bank statement.
	Reconcile a bank statement.
ACCOUNTING PRINCIPLES AND PROCEDURES		10	0	0
Assets	Define assets as it applies to the balance sheet equation.
	Describe the items which are classified as assets in an accounting system.
	Verify the asset entries of an accounting statement.
Liabilities	Define liabilities as it applies to the balance sheet equation.
	Describe the items which are classified as liabilities in an accounting system.
	Verify the liability entries on an accounting statement.
Owner's equity	Define owner’s equity as it applies to the balance sheet equation.
	Describe the items which are classified as owner’s equity in an accounting system.
	Verify the owner's equity entries on an accounting statement.
	Use the balance sheet equation to find assets, liabilities, and owner’s equity.
Debits	Describe the items which are classified as debits in an accounting system.
	Verify the debit entries of an accounting statement.
Credits	Describe the items which are classified as credits in an accounting system.
Accounting cycle	Discuss the accounting cycle as it applies to hotel, restaurant, and travel agency operations.
ELEMENTS OF FINANCIAL STATEMENTS		10	0	0
Income	Describe items listed as income on financial statements.
	Prepare the income section of a financial statement for a hotel, restaurant, and travel operation
Capital statement	Describe a capital statement for hotel, restaurant, and travel.
	Prepare a capital statement for hotel, restaurant, and travel.
Balance sheet	Describe the elements of a balance sheet.
	Prepare a balance sheet for a hotel, restaurant, and travel operation.
MAINTAINING FINANCIAL STATEMENTS		10	0	0
Trial balance	Discuss the elements of a trial balance sheet.
Working papers	Discuss the elements of working papers.
	Adjust entries of working papers to reflect real time condition.
	Prepare working papers for hotel, restaurant, and travel agency operations.
ANALYSIS OF FINANCIAL RECORDS		10	0	0
Comparative analysis	Define comparative analysis as it applies to accounting procedures in the hospitality industry.
	Discuss the procedure used when applying the comparative analysis method.
	Prepare a comparative analysis of an income statement.
	Prepare a comparative analysis of a balance sheet.
	Analyze the findings of the income statement and balance sheet.
Common-size analysis	Define common-size analysis as it applies to accounting procedures in the hospitality industry.
	Review the findings of a common-size analysis of an income statement and balance sheet.
	Discuss the procedure used when applying the common-size analysis method.
	Prepare a common-size analysis of an income statement.
	Prepare a common-size analysis of a balance sheet.
Ratio analysis	Define ratio analysis as it applies to accounting procedures in the hospitality industry.
	Discuss the procedure used when applying the ratio analysis method.
	Apply ratio analysis to a given set of figures.
Liquidity	Apply the equations to determine liquidity.
Solvency	Apply the equations to determine solvency.
Profitability	Apply the equations to determine profitability.
Operations	Apply the equations to determine inventory turnover.

Suggested Resources

Suggested Resources include textbooks shown below or most current edition.

Coltman, M. (1987). Hospitality management accounting (3rd ed.). New York: Van Nos Reinhold.

Haines, R. G. (1988). Math principles for food service occupations (2nd ed.). Albany, NY: Delmar.

Moncarz, E. S., & Portocarrero, N. J. (1986). Financial accounting for hospitality management. Westport, CT: AVI Publishing.