Tca Test 2

Front 1

cost of goods sold

Back 1

the cost of the products that are sold in the operation of the business

Front 2

departmental statements

Back 2

supplements to the income statement that provide management with detailed financial information by operating department and service center, aka schedules

Front 3

direct operating expenses

Back 3

expenses related directly to the department incurring them and consisting of cost of sales, payroll and related expenses

Front 4

earnings per share

Back 4

a ratio that indicates the profitability of a hospitality operation by comparing net income to the average common shares outstanding

Front 5

external users of financial statements

Back 5

creditors, potential investors, and passive owners of a business who need general info on sales, expenses, assets, and liabilities

Front 6

extraordinary item

Back 6

an item (usually a loss) reported at the end of the income statement that is both highly unusual

Front 7

fixed charges

Back 7

a category of expenses on the income statement that relates to decisions outside the area of of control. rent, property taxes, insurance, interest, and depreciation and amortization

Front 8

gains

Back 8

increase in assets, reductions in liabilities

Front 9

income statement

Back 9

a report on the profitability of operations, including revenues earned and expenses incurred in generating the revenues for the period of time covered by the statement

Front 10

internal users of financial statements

Back 10

managers of hospitality firm

Front 11

losses

Back 11

decreases in assets, increases in liabilities

Front 12

management fees

Back 12

cost of using an independent management company to manage the firm

Front 13

prior period adjustment

Back 13

correction of an error, shown on the statement of retained earnings

Front 14

responsibility accounting

Back 14

focuses on departmental results such as the rooms, food, and beverage departments

Front 15

statement of retained earnings

Back 15

formal statement that shows changes in retained earnings

Front 16

total departmental income

Back 16

difference between an operating departments revenue and direct expenses.

Front 17

undistributed operating expenses

Back 17

expenses not directly related to income generating departments. consists of marketing, property operation, maintenance, and utility costs

Front 18

uniform system of accounts

Back 18

offers detailed info about accounts, classifications, formats, and uses of financial statements

Front 19

additional paid-in capital

Back 19

payments for capital stock in excess of the stated or par value of the capital stock

Front 20

capital stock

Back 20

shares of ownership of a corporation