The Importance Of Hospitality Accounting

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The purpose of me writing this essay is to explain what I understand about Hospitality Accounting, also what I have learn in class. first and foremost, let me just add that I thought that accounts were only for business persons; persons with big successful businesses. As my studies goes on I am further gathering that even myself can benefit from doing accounts the right way and also in the career field I choose to pursue but before I go any feather. What is accounting? Accounts is a record of financial expenditure or receipts relating to a particular period weather a week or a month maybe even a year etc... Accounts is also a reliable decision towards anyone within any business organization once done correctly. Accounting is divided into two…show more content…
There can be errors on a trial balance that the computer can’t detect such as error of principle, error of original entry, error of reversal, error of commission, error of compensation and error of omission. Final stage is to make sure the financial statements are prepared. In addition, the concepts of accrual, accounting entity, monetary unit (money) and the time period are also very important when preparing and interpreting financial statements. There are important Qualitative characteristics of financial statements as I get to understand that different users required financial information for assistance in their economic decisions. Entities publish financial statements so that users can get their information needs fulfilled. There are four principal’s characteristics such as understandability, Relevance, reliability and last but not lease…show more content…
Natural personal account this is an account related to any individuals for example Katherina’s account. Next you have an Artificial personal account which is an account that related to any artificial person like Yvonne’s advisory ltd the last one is Representative personal account this is an account that represents a group of account. If there are a number of accounts of similar natural it is better for you to group them. Real account every business must have some assets and every assets has an account. So assets accounts are called real account assets are classified in two groups such as Tangible assets which are assets that u can touch such as furniture, machinery, stocks, cash, plants etc.… and also you have Intangible assets these are non- touchable assets such as goodwill, patent, copyrights, etc. The final classification of accounts is nominal accounts this is an account that does not represent any tangible asset, it is called a nominal or fictitious account which records all kind of accounts such as expense account, loss account, gain account or income

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