Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
32 Cards in this Set
- Front
- Back
cost principle
|
all transactions must be recorded at cost
|
|
fulle disclosure principle
|
events that coupl impact a company's financial position should be reflected on financial statements or footnotes
|
|
revenue recognition principle
|
revenues should be rocorded in the month they are earned
|
|
matching principle
|
match expenses to the appropriate revenue stream
|
|
monetary unit principle
|
only transactions that can be expressed in terms of money can be shown on a company's financial statement
|
|
economic entity principle
|
separates the dealings of business from the private dealings of its owners
|
|
going concern principle
|
requires businesses to assume they will continue to operate into the foreseeable future
|
|
time period principle
|
the company must set specific time periods for measuring its financial results
|
|
materiality principle
|
significant revenues or expenses should have their own account on the income statement
|
|
Accounts on an Income Statement
|
- Revenues
-Operating Expenses -Capital Expenses - Income before Income Taxes |
|
Accounts on a Balance Sheet
|
- Assets (current and longterm)
- Liabilities (current and longterm) - Equity |
|
Cash Flow from Operations
|
minus = inflow
plus = outflow - depreciation - accounts receivables - inventory - prepaid rent - accounts payable - accrued payroll - accrued taxes |
|
Cash Flow from Investing Activities
|
- Purchase of FF&E
- Sale of long-term investments |
|
Cash Flow from Financing Activities
|
- payment of long-term debt
- increase in owner's equity |
|
Daily Revenue Reports
|
What? A report that summarizes revenues earned by each department within an operation
Increase Profits? see how current profits compare to the budget and adjust spendings accordingly |
|
Daily Payroll Cost Report
|
What? A report that details payroll costs by position
Increase Profit? Can monitor labor and overtime per day based on forecasted revenues. |
|
Rooms Revenue Forecast
|
What? A report that projects the number of rooms to be sold during the upcoming period and the average room rates associated with the projection
Increase Profit? can adjust payroll to rooms revenue |
|
Food and Beverage Menu Abstract
|
What? tracks popularity and the profitability of menu items
Increase Profit? helps management make menu changes as appropriate and determine value of menu items |
|
Accounts Receivable Aging Schedule
|
What? a schedule that details how long an account receivable has been outstanding or unpaid. (longer, the more aged)
Increase Profits? want to collect as soon as possible to increase profits |
|
CP3 System four components
|
tool that can help budget cash properly
1. monthly commitment budget 2. a purchase order system 3. daily payroll system 4. daily profit and loss statement |
|
Current Ratio
|
current assets/current liabilites
|
|
Accounts Receivable Turnover
|
total rev/avg accounts receivable
|
|
Average Collection Period
|
31 days/ accounts receivable turnover
|
|
Food or Bev inventory turnover
|
cost of food sold/average food inventory
same for bev |
|
Food/Bev/Labor/Departmental Profit Percentage
|
cost of food sold/food sales
(same from bev labor and departments) |
|
Profit Margin
|
net income/total revenue
|
|
Return on Investment
|
cash flow/total equity
|
|
Profit Flexing
|
- maximizing revenues and minimizing costs at the same time to achieve maximum profit level
- inviate when revenues fall behind budget - reduce expenses w/o impacting customer service - minimize impact of lower revenue on the bottom line |
|
Revenue Management
|
- Goal is to maximize RevPar by:
1. close lower rates during high demand 2. open all rates during times of low demand 3. sell first to high rated market segments 4. sell to thsoe market segments that spend the most money at the hotel for food bev and other amenities |
|
Break even analysis formula
|
units sold x price variable cost %(revenue) - fixed cost = desired profit
|
|
STAR report
|
monthly; used by hotel owners and managers to compare their hotel's occupancy, ADR and revPAR with that of a customized set of hotels that compete with theirs
|
|
host report
|
annual; allows a hotel to compare its operating results with those of other comparable hotels
|