TAILIEUCHUNG - Ebook Hospitality financial accounting: Part 2

(BQ) Part 2 book "Hospitality financial accounting" has contents: Financial statements, payroll; inventories, cost calculations, and internal controls; accounting for receivables and payables; long term and intangible assets; sole proprietorships, partnerships, and corporations. | 12/19/03 3:40 PM Page 224 FINANCIAL STATEMENTS THE NAVIGATOR ✓ • Understand Concepts for Review ❑ • Read Feature Story ❑ • Scan Study Objectives ❑ • Read Preview ❑ • Read text and answer Before You Go On p. 239 ❑ p. 249 ❑ p. 262 ❑ • Work Demonstration Problem ❑ • Review Summary of Study Objectives ❑ • Complete Assignments ❑ 8 C ONCEPTS FOR REVIEW Before studying this chapter, you should know or, if necessary, review: a. The difference between the accrual basis and the cash basis of accounting. (Ch. 4, pp. 113–114) b. The major items included in a corporation’s balance sheet. (Ch. 5, pp. 161–166) ✓ THE NAVIGATOR 12/19/03 F 3:40 PM Page 225 E A T U R E S T O R Y Cash Is King Cash flow is important, and “Cash is king” is a phase used in almost all industries. For the most part, cash is the only difference between successful operations and closure. We all know that the income statement is important because it tells us how much money the operation has made. But, due to the accrual basis of accounting, we record sales when the transaction occurs, not when the cash is received. Thus, while an income statement may show a profit, if the sales made are still in the form of accounts receivables, there is no cash on hand to pay bills. We also know that the balance sheet is important because it gives us, in a snapshot, the financial picture of our business. As with the income statement, it is done on an accrual basis. The balance sheet might show $200,000 in the cash account, but if there is also $400,000 in accounts payable, this is not a comfortable picture. Therefore, you will want to use a statement of cash flows to give you an exact idea of where the money comes from, how it is spent, and, most important, how much cash you really have on hand for the business. But while the statement of cash flows is fundamental, it is also the most complex of the three statements. In November 1987, the Financial

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• Hospitality financial accounting
• Financial accounting
• Hospitality accounting
• Financial statements
• Cost calculations
• Intangible assets
• Sole proprietorships
• Accounting principles
• Recording process
• Subsidiary ledgers
• The recording process
• Adjusting the accounts
• Hospitality management accounting
• Management accounting
• Ratio analysis
• Internal control
• Understanding financial statements
• Financial management
• Hospitality financial management
• Hospitality industry management
• Financial reporting
• Hospitality industry
• Accounting system
• Hospitality industry accounting
• Managerial accounting
• Accounting fundamentals
• Management of revenue
• Accounting information
• Cost management
• Financial goals
• Capital budgeting
• Working capital analysis
• Goods calculation
• Merchandising operations
• Management reports
• Managing working capital
• Accounting standards
• Managerial accounting for costs
• Income statement