CAHS 42 Hotel and Restaurant Accounting (3)
Credit, Degree Applicable
An overview of hotel and restaurant accounting; emphasis on understanding what "the numbers" mean and how to apply them in making decisions in the operation of a hotel or restaurant.
After successful completion of this course, students will be able to:
- Outcome 1: Formulate decisions regarding accounting-related issues involved in starting a hotel or restaurant such as form of business organization, means for acquiring assets, and type of accounting method employed.
- Outcome 2: Describe and record transactions, employing the Accounting Equation format, both for a large hotel, using Accrual Basis Accounting - required under Generally Accepted Accounting Principles (GAAP) - and for a small restaurant, using Cash Basis Accounting.
- Outcome 3: Differentiate between an Income Statement and Balance Sheet and how to use such financial statements in facilitating control of hotel and restaurant operations.
- Outcome 4: Analyze a restaurant's primary Income Statement components for sequential review and then critically assess them with regard to the overall operating performance for the restaurant.
- Outcome 5: Analyze a rooms department's Income Statement for a hotel, using such factors as average room rate, occupancy percentage, revenue per available room (RevPar), and departmental controllable profit.
- Outcome 6: Apply fixed/variable cost analysis in planning and making short-term decisions for hotel/restaurant businesses.
- Outcome 7: Summarize and distinguish between other major financial statement component factors including accounting for inventories; payroll and payroll taxes; depreciation and long-term assets; sales and hotel taxes; and cash, debit, and credit cards and related bank reconciliations.