Houston Community College Systems
Hotel/Restaurant Management
HAMG 2332
HOSPITALITY FINANCIAL MANAGEMENT
Credit: 3 (3 lecture)
Course Description
This course introduces basic financial accounting concepts, accounting for expenses, accounting for sales,
and payroll accounting; outline principles and procedures of preparing the three financial statements
currently in use in the hospitality industry: The balance sheet, the income statement and the statement of
cash flow. Corporate Accounting, Bonds, Leases, and Mortgage Payable, Investments in Corporate
Securities, Analysis and Interpretation of Financial Statements
Prerequisites:
None
Course Goals
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Define accounting and distinguish it from bookkeeping.
Identify the financial statements and their importance in the hospitality industry.
Describe the various types of accounting positions
Identify various governmental and professional organizations that influence the field of
hospitality accounting.
Explain the purpose of, and define several, generally accepted accounting principles.
Define the basis of the double-entry accounting system and identify the normal balances
of the various types of accounts.
Identify the five account classifications and the fundamental accounting equation.
Describe the major forms of business organization and the advantages and disadvantages
of each.
Outline the taxation of business income for the major forms of business organization.
Identify the major financial statements and explain when they are issued.
Define the purpose and describe the contents of the statement of income, statement of
owner’s equity, statement of retained earnings, balance sheet, and the statement of cash
flows.
Identify the accounts used to prepare a balance sheet, and identify and describe the asset
accounts.
Describe the liability accounts on the balance sheet.
Identify the types of, and describe the accounting for, bonds.
Identify and describe the equity accounts.
Describe the income statement, identify the accounts used to prepare an income
statement, define the revenue classification, and explain when a sale is recognized.
Define and describe the accounting treatment for sales taxes and servers’ tips, employee
meals, cost of sales, food used, and gross profit.
Explain the accounting procedures for a perpetual inventory system and a periodic
inventory system, and describe the differences in accounting for purchases and cost of
sales.
List the typical day-to-day operating and fixed expenses.
Define depreciation and explain the difference between depreciation expense and
accumulated depreciation.
Define and describe bookkeeping and double-entry accounting, and identify common
bookkeeping accounts and tools.
Describe learning debits and credits, and use three basic questions to analyze business
transactions.
Define debits and credits and use them to record business transactions.
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Define contra accounts, identify common contra accounts, and explain how these
accounts are used.
Identify the normal account balances for each account classification.
Describe the advantages and potential disadvantages of using a computerized accounting
system.
Describe the general journal and the various special journals.
Describe the three-column account format and the various ledgers that can be used.
Describe an on-line accounting system and its hardware components.
Identify the standard modules in a general ledger software package and describe the
function of each module.
List factors to consider when selecting a general ledger software package.
Describe the accounting cycle and the difference between accrual and cash basis
accounting.
Explain the steps necessary to convert from a manual accounting system to a
computerized accounting system.
Describe how special journals can be used as the source document for input to the
computerized accounting system.
Describe a working trial balance and identify adjusting entries.
Explain how net income or loss is manually calculated to verify the accuracy of the
computerized financial statements.
Describe the income statements and the accounting procedures for full-service and fastfood restaurants in accordance with the Uniform System of Accounts for Restaurants.
Summarize the significance of restaurant accounting, and describe basic elements for
food and beverage sales accounting.
Describe the measurement of food and beverage costs and the various operating
expenses.
List sources of other income and describe accounting procedures for recording other
income.
Describe how a restaurant’s balance sheet and chart of accounts may differ from those of
other industries.
Identify and explain the various food sales and beverage sales analysis statistics.
Describe hotel financial statements for external users, and explain the internal hotel
income statement and departmental statement formats recommended by the Uniform
System of Accounts for the Lodging Industry.
Explain the revenue and expense accounting procedures for a lodging property
recommended by the Uniform System of Accounts for the Lodging Industry.
Identify and explain the special accounting considerations for a hotel with a casino
department.
Identify and explain the unique balance sheet accounting considerations for a lodging
property.
Describe the composition of a chart of accounts for a lodging property.
Identify and describe the operating ratios useful to the management of a lodging property.
Define internal control and explain its objectives and limitations.
Describe the principles of internal control for cash receipts and prepare a daily cashiers
report.
Describe the principles of internal control for cash disbursements.
Explain the purpose of a bank reconciliation, describe reconciling items, and prepare a
bank reconciliation.
Explain the composition of a financial statement package.
Explain why the monetary amounts on financial statements can give a false illusion, and
describe the effect of accrual accounting on revenue, expenses, net income, liabilities,
and equity.
Describe how to read and analyze the income statement, balance sheet, and statement of
cash flows using common analytical methods.
Summarize the federal government's authority regarding reporting by public companies,
and discuss the SEC, the Sarbanes-Oxley Act, and the 10-K report.
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List and describe the major components of the annual report to shareholders.
Summarize the advantages that hospitality businesses enjoy if they accept credit cards,
and explain merchant accounts.
Describe point-of-sale systems.
Explain real-time credit card processing, and discuss steps businesses take to combat
credit card fraud.
List and describe typical merchant account fees.
Explain the importance of budgeting and forecasting, describe the budgeting process, and
summarize general guidelines for creating a budget.
Describe sales forecasting.
Explain the relationship of expenses to volume, and describe variable, fixed, and semivariable expenses.
Discuss the breakeven point, and explain the breakeven point and profit target formulas.
Discuss what is involved in starting your own business, explain the start-up assistance
and resources that are available for small businesses, and describe the franchise option.
Summarize the initial planning that is involved in starting a business, and explain the
different types of insurance that a business should consider.
Scans:
1.
2.
3.
Material and Facilities – Using Techniques and programs to assist to prepare inventory, requisitions,
schedules and generate reports to be distributed to proper authorities.
Basic Skills – Reading – Throughout this course, students are able to get data from different
departments interpret meaningful of it then send it back to department managers for accuracy.
Thinking Skills – problem solving – Students able to recognize problem and develop possible solutions
list that will assist manager in their daily operation.
Instructor
Husam Jalboush
HCCS – Central Campus
1300 Holman, SJAC 302 A
Husam.jalboush@hccs.edu
Textbook
Basic Hotel and Restaurant Accounting, Raymond Cote, published by the
American Hotel and Lodging Educational Institute, Sixth Edition.
Lab Requirements:
None
Students with Disabilities
“Any student with a documented disability (e.g. physical, learning, psychiatric, vision, hearing, etc.) who
needs to arrange reasonable accommodations must contact the Disability Services Office at the respective
College at the beginning of each semester. Faculty are authorized to provide only the accommodations
requested by the Disability Support Services Office.”
If you have any questions, please contact Disability Counselor at your college or Donna Price at (713) 7185165.
Academic Honesty
Students are responsible for conducting themselves with honor and integrity in fulfilling course
requirement.
Attendance and Withdrawal Policies
I.
Attendance
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B.
C.
II.
Students are expected to attend all classes.
Students are responsible for all work missed during and absence.
If a student missed more than two classes, he/she may be withdrawn from the
course by the instructor.
Withdrawal
To help students avoid having to drop/withdraw from any class, HCC has instituted and Early Alert
process by which your instructor will "alert" you and HCC Student Services of the chance you might
fail a class because of excessive absences and/or poor academic performance. You should visit
an HCC counselor or HCC Online Student Services to learn about what, if any, HCC interventions
might be offered to assist you - tutoring, child care, financial aid, job placement, etc. - to stay in
class and improve your academic performance.
You MUST visit with a counselor or on-line student services prior to withdrawing (dropping) the
class and this must be done prior to November 8, 2007, 4:30PM to receive a "W" on your
transcript. After that deadline, you will receive the grade you are making in the class which will
more than likely be an "F".
A student may withdraw in any of the following ways:
A. Complete an official withdrawal form at the campus attended or any other
HCCS campus.
B. Send a letter requesting withdrawal to:
Registrar
Houston Community College System
P. O. Box 667517
Houston, TX 77266-7517
Course Requirements and Grading Policy
I.
Course Requirements
Students performance will be evaluated through true/false, fill in the blank and multiple
choice questions. To evaluate students achievement for the stated objectives he/she will
complete a comprehensive final exam. Three exams with 25% of the grade and a final
exam with 20% of the grade.
II.
Grading Policy
A = 90 – 100
B = 80 – 89
C = 70 – 79
D = 60 – 69
F = 59 and below
Final Evaluation Criteria
Final Evaluation Criteria
Attendance and participation
Three basic progress test(1 Exercise)
Homework and Quizzes
Comprehensive Final Exam
Term Project
15%
30%
15%
20%
20%
Testing
Exam 1
Essential Need of Accounting For Business, Business Organization and Taxation,
Introduction to Financial Statements, Analysis of Balance Sheet Account, Analysis of
Income Statement Account.
Exam 2
The Bookkeeping Process, Computer Accounting Software, Computerized Accounting
Cycle
Exam3
Restaurant Accounting, Hotel Accounting, Internal Control of Cash
Final Exam
How to Read and Analyze Financial Statements, Annual report to Shareholders,
Merchant Account, Introduction to Budgeting and Forecasting, Starting Business
Make-up Policy
Only under special circumstances that the student does not have any control and with the
instructors approval, make ups will be given.
Projects, Assignments, Portfolios, Service Learning, Internships etc.
I. Projects
A group project related to the ACCOUNTING department is required, it will have 2025% of the grade and is due three week before the final exam. A presentation of the
project is optional. But as a group you are welcome to do the presentation and earn extra
points.
II. Assignment
Homework is assigned from the end of each chapter and will have 15% of the grade. Be
ready for POP quiz at anytime.
Course Content
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Essential Need of Accounting For Business
Business Organization and Taxation
Introduction to Financial Statements
Analysis of Balance Sheet Account
Analysis of Income Statement Account
The Bookkeeping Process
Computer Accounting Software
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Computerized Accounting Cycle
Restaurant Accounting
Hotel Accounting
Internal Control of Cash
How to Read and Analyze Financial Statements
Annual report to Shareholders
Merchant Account
Introduction to Budgeting and Forecasting
Starting Business
Course Calendar with Reading Assignments: Exam dates will be announced in class.
Essential Need of Accounting For Business
Business Organization and Taxation
Introduction to Financial Statements
Analysis of Balance Sheet Account
Analysis of Income Statement Account
The Bookkeeping Process
Computer Accounting Software
Computerized Accounting Cycle
Restaurant Accounting
Hotel Accounting
Internal Control of Cash
How to Read and Analyze Financial Statements
Annual report to Shareholders
Merchant Account
Introduction to Budgeting and Forecasting
Starting Business
Other Student Information (clubs, tutoring, web resources, etc.)
You need to do your homework in the following format:(sample)
Your name here
Chapter 21
Question 6/ page 905
Question 10/ page 906