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Terms in this set (48)
What is operating expense?
Examples of operating expense
What is cost center?
Examples of coster center
What is revenue center?
Examples of revenue center
What is controllable expenses?
Examples of controllable expenses
What is uncontrollable expenses?
Examples of uncontrollable expenses
Define and identify stakeholders of a business.
Describe the advantages of using a uniform system of accounts for a hotel, restaurant, or other hospitality company.
you are able to compare with other similar companies, aka benchmarking
What is prime cost?
What is the prime cost formula?
What is gross operating profit?
What is the gross operating profit formula?
What is the revenue recognition principle? and be able to calculate accrual accounting revenue for a time period
What is the matching principle?
What is accrual accounting?
-provides a more realistic idea of income and expenses during a period of time
-revenue and expenses are recorded when they are earned, regardless of when money is actually received or paid
What is cash accounting?
-recognizes revenues when cash is received and expenses when they are paid
-beneficial in terms of tracking how much cash the business actually has at any given time
Explain the purpose of vertical analysis and identify some other names for it
explain the purpose of horizontal analysis and identify some other names for it
be able to calculate cash accounting revenues and/or expenses for a given time period
describe the advantages and/or disadvantages of accrual accounting versus cash accounting
Explain what top line is and/or be able to identify the top line for a company
Define assets of a company
-what the company owns
-cash (it's a value)
Define liabilities of a company
-what the company owes
Define revenues of a company
amounts earned through sales of goods and services
Define expenses of a company
Define and/or give examples of source documents
Explain the 4 sections of an income statement prepared with the uniform system of accounts for restaurants and rank them according to their controllability
Explain the 5 sections of an income statement prepared with he uniform system for hotels and rank them according to their controllability
explain why prime cost is so important and explain why the prime cost percentage is more important than the prime cost dollar value
Explain how managers use key performance indicators to help run their business. identify some likely key performance indictors
define benchmarking and explain its importance in managing businesses
Define various components of balance sheets (e.g. assists-current and long term, liabilities-current and long term, owners equity)
Explain the differences between supplies, inventory and equipment
explain the concept of depreciation, including original cost, useful life, salvage value, depreciable cost, depreciation expense and accumulated deprectiation
explain the difference between tangible assets (property, plant and equipment) and intangible assets
identify examples of intangible assets
explain what goodwill represents and the conditions under which a company will report it on its financial statements
explain how recording depreciation expense helps to satisfy the expense recognition (matching) principle
explain the difference between a normal expenditure and the purchase of a fixed asset
explain the difference between owner contributions and retained earnings
Also called a PNL
over a time period
its a point in time
Cash Flow Report
shows what money we currently have in the bank
the amount of money the shareholders (owners) put in or have earned but not taken out
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