Accounting Basics
Money a business earns
➡️ What is revenue?
This executive is the head of the accounting department in a hotel.
Who is the Controller?
This statement shows revenue, expenses, and net income over a period of time.
What is an Income Statement (or P&L)?
The primary goal of this shift is to verify the accuracy of the day's transactions.
What is the Night Audit?
In a T-chart, this term refers to the left side of the account.
What is a T-Chart?
Money a business spends
➡️ What are expenses?
The department responsible for money the hotel owes to vendors and suppliers.
What is Accounts Payable (AP)?
Often called a 'snapshot,' it lists assets, liabilities, and equity.
What is a Balance Sheet?
This system is used by the front desk to manage guest folios and room status.
What is a discrepancy?
In a T-chart, this term refers to the right side of the account.
What is a Debit?
Profit after expenses are subtracted
➡️ What is net profit?
The department responsible for collecting money owed to the hotel by guests.
What is Accounts Receivable (AR)?
This statement tracks the actual movement of cash into and out of the business.
What is a Cash Flow Statement?
This is the term for a difference between recorded sales and actual cash on hand.
What is a folio?
To increase the balance of an Asset account, you must do this to it.
What is a Credit?
This technology system is used specifically in restaurants to track food sales.
What is the Uniform System of Accounts?
This specific role monitors food costs and prevents waste in the kitchen.
What is the Food & Beverage Controller?
On a Balance Sheet, this category represents what the business owes to others.
What are Assets, Liabilities, and Equity?
This task involves checking the Property Management System reports against physical receipts and vouchers.
What is verifying the day's transactions?
To increase the balance of a Revenue account, you must do this to it.
Revenue accounts increase on the credit side.
This 'P' in PMS stands for this, referring to the hotel building and grounds.
What is the Property?
This quality is essential for accountants to ensure every cent is accounted for.
What is the Purchasing Department?
This is the basic accounting equation: Assets = Liabilities + ______.
What is a Equity?
This must be performed every single night to ensure the books balance for the next day.
What is balancing the guest ledger?
If a guest pays $500 cash for a room, this account is credited.
What is Revenue? (Revenue is credited because it increases)