Hospitality Management Accounting
Chapter One
BASIC FINANCIAL
ACCOUNTING REVIEW
INTRODUCTION
Every profit or nonprofit business entity
requires a reliable internal system
of accountability. A business accounting
system provides this accountability
by recording all activities
regarding the creation of
monetary inflows of sales revenue
and monetary outflows of expenses
resulting from operating activities.
The accounting system provides the
financial information needed to evaluate
the effectiveness of current and
past operations. In addition, the accounting
system maintains data required
to present reports showing the
status of asset resources, creditor liabilities,
and ownership equities of the
business entity.
In the past, much of the work
required to maintain an effective accounting
system involved extensive
manual effort that was tedious, aggravating,
and time consuming.
Such systems relied on individual
effort to continually record transactions,
to add, subtract, summarize,
and check for errors. The rapid advancement
of computer technology
has increased operating speed, data ... read full excerpt from Hospitality Management Accounting ebook
