Hospitality Industry Financial Accounting – ICM UK

You’ll learn about the responsibilities of a hotel’s accounting department, advantages and drawbacks of various types of statements and reports, the role of inventory in calculating profit, and more.

Duration

3 to 6 Months

Study Mode

Blended Learning

What is Included?

  • Study plans with flexibility of time and space.
  • Globally recognized and verifiable Certificates and qualifications.
  • Premium subscription to GPDP Learning Resources worth US$250.
  • Premium subscription of Typsy–Australia worth US$96. (Video Training Courses)
  • Premium subscription to Internships & Placements Program to build your resume, and prepare for job interviews, with our AI-based video interviewing platform to land the job you want.
  • Lifetime membership of COTHM Community of Hospitality Students & Professionals.
  • Lifetime access to Online Events Portal to attend webinars and talks by industry experts
  • Career Pathway & Education pathway counseling

Criteria

Am I eligible for this progamme?

This course is most suited to individuals who are at least 16 years old, have a high school education.

English Proficiency

Candidates who do not have English as a first language will have to demonstrate competence in reading, writing, and listening skills in English.

About this Course​

This course is a comprehensive introduction to hospitality accounting. You’ll learn about the responsibilities of a hotel’s accounting department, advantages and drawbacks of various types of statements and reports, the role of inventory in calculating profit, and more. You do not need any prior accounting experience to take this course. This course may be used as a prerequisite for course

Education Path

After successful completion of this professional qualification any of below certification path:

  • Continues to gain more Hospitality Certifications
  • Continue with Hospitality Specializations
  • Continue with  Hospitality Fundamentals Program
  • Continue with Hospitality Management Diploma

Career Path

Getting certified gives you the skills needed to prepare you for the wide-open world of hospitality. Once you have graduated, you can take several paths to apply your degree.

  • Food and Beverage Management
  • Rooms Division Management
  • Marketing Management
  • Destination Management
  • Human Resources
  • Resort Management
  • Club Management
  • Travel and Tourism Management

This certification can help you grow faster in your existing career as well can open new career opportunity  in the following industry  sectors:

  • Hotels
  • Motels
  • Restaurants
  • Fast Food Chains
  • Café
  • Catering Companies
  • Event Management Companies
  • Travel & Tour Operators
  • Airlines
  • Clubs
  • Cruise Ships

Assessment

Proctor Required: No
Number of Examinations:
 1
Number of Questions per Course: 200
Time Allowed per Course: 240 minutes
Passing Score: 70%

  • A moc exam is provided before the candidate appears in the final examination
  • A one week notice is required to schedule the final examination
  • All examination are held invigilated by COTHM administration

Awarding Body

Upon successful completion, the candidate will be awarded with:

  • Certification by ICM UK (An Ofqual Regulated Awarding Body.

 

Syllabus


Chapter 1: Introduction to Accounting
  1. Accounting Defined
    a. Bookkeeping Versus Accounting
  2. Branches of Accounting
  3. Organizations Influencing Accounting
  4. Forms of Business Organization
    a. Sole Proprietorship
    b. Partnerships
    c. Limited Partnerships
    d. Limited Liability Companies
    e. Corporations
    f. S Corporations
  5. The Accounting Function in the Hospitality Industry
  6. Principles of Accounting
    a. Cost
    b. Business Entity
    c. Continuity of the Business Unit (Going Concern)
    d. Unit of Measurement
    e. Objective Evidence
    f. Full Disclosure
    g. Consistency
    h. Matching
    i. Conservatism
    j. Materiality
    k. Revenue Recognition
  7. Overview of Financial Statements
    a. Balance Sheet
    b. Income Statement
    c. Statement of Cash Flows
  8. Cash Versus Accrual Accounting
  9. The Fundamental Accounting
    a. Equation Effects of Transactions on the Accounting Equation
Chapter 2: Accounting for Business Transactions
  1. Accounts
    a. Asset Accounts
    b. Liability Accounts
    c. Owners’ Equity Accounts
  2. Debit and Credit
    a. Mechanics of Double-Entry Accounting
    b. Recording Changes in Assets, Liabilities, and Owners’ Equity
    c. Recording Changes in Revenues and Expenses
    d. Recording Owner’s Withdrawals
    e. Determining Account Balances
    f. Normal Balances
  3. General Ledger
  4. Journalizing
    a. Standard Account Forms
    b. Posting
    c. The Trial Balance
    d. Compound Journal Entries
  5. Comprehensive Illustration—Journalizing, Posting, and Preparing a Trial Balance
Chapter 3: Accounting Adjustments
  1. The Need for Adjustments
  2. Cash Versus Accrual Accounting
  3. Classification of Adjusting Entries
  4. Deferral Adjustments Illustrated
    a. Prepaid Insurance/Insurance Expense
    b. Depreciation Expense
    c. Unearned Revenues
  5. Accrual Adjustments Illustrated
    a. Accrued Wages Payable
    b. Accrued Utilities
    c. Accrued Assets
  6. Failure to Prepare Adjustments
  7. Comprehensive Illustration—Adjustments
Chapter 4: Completing the Accounting Cycle
  1. The Accounting Cycle
    a. Adjusted Trial Balance
    b. Preparation of Financial Statements
    c. Closing Entries
    d. Post-Closing Trial Balance
  2. The Worksheet
  3. Reversing Entries
  4. Comprehensive Illustration—Completing the Accounting Cycle
Chapter 5: Income Statement
  1. Major Elements of the Income Statement
  2. Relationship with the Balance Sheet
  3. Sales
  4. Cost of Goods Sold
  5. Expenses
  6. Gains and Losses
  7. Income Taxes
  8. Extraordinary Items
  9. Earnings per Share
  10. Income Statements for Internal and External Users
  11. Uniform System of Accounts Internal Income Statements—A Contribution Approach
    a. Contents of the Summary Operating Statement
  12. Departmental Statements
  13. Uniform System of Accounts for Restaurants
  14. Statement of Retained Earnings
Chapter 6: Balance Sheet
  1. Purposes of the Balance Sheet
  2. Limitations of the Balance Sheet
  3. Balance Sheet Formats
  4. Content of the Balance Sheet
    a. Current Accounts
    b. Non current Receivables
    c. Investments
    d. Property and Equipment
    e. Other Assets
    f. Long-Term Liabilities                                                                   g. Owners’ Equity
    h. Footnotes
    i. Consolidated Financial Statements
Chapter 7: Specialized Journal and Subsidiary Ledgers
  1. Control Accounts and Subsidiary Ledgers
  2. Specialized Journals
    a. Sales Journal
    b. Cash Receipts Journal
    c. Purchases Journal
    d. Cash Disbursements Journal
  3. General Ledger
  4. General Journal
  5. Payroll Journal
  6. Specialized Journals for Lodging Operations
  7. Computerized Systems
    a. Hardware
    b. Software
    c. Hotel Computer Systems
Chapter 8: Cash
  1. Internal Control of Cash
  2. Voucher System
    a. Preparation of a Voucher
  3. Petty Cash
  4. Bank Reconciliation
    a. Preparing a Bank Reconciliation
    b. Illustration of a Bank Reconciliation
  5. Gross Method of Recording Purchases
  6. Net Method of Recording Purchases
  7. Credit Card Sales
  8. Integrated Cash Management for Multi-Unit Operations
Chapter 9: Receivables and Payables
  1. Uncollectible Accounts Expense (Bad Debts)
    a. Direct Write-Off Method
    b. Allowance Method
  2. Notes Receivable
    a. Interest-Bearing Notes
  3. Notes Payable
    a. Non-Interest-Bearing Notes
Chapter 10: Inventory
  1. Periodic Versus Perpetual Inventory Systems
    a. Taking a Physical Inventory
    b. Consigned Goods
    c. Transportation Costs
  2. Inventory Valuation Methods
    a. Comparison and Evaluation of Inventory Valuation Methods
  3. Estimating Ending Inventory and Cost of Goods Sold
    a. The Retail Method
    b. The Gross Profit Method
  4. Lower of Cost or Market
  5. Perpetual Inventory System
Chapter 11: Property, Equipment, and Other Assets
  1. Property and Equipment
    a. Lump Sum Purchase
    b. Depreciation
  2. Intangible Assets
  3. Other Assets
Chapter 12: Current Liabilities and Payroll
  1. Notes Payable
  2. Accounting for Payroll-Related Liabilities
    a. Payroll Records
    b. Regular Pay and Overtime Pay
    c. Payroll Journal Entries
    d. Reporting Tips
  3. Other Current Liabilities
    a. Property Taxes
Chapter 13: Partnerships
  1. Advantages of Partnerships
    a. Ease of Formation
    b. No Partnership Taxes
    c. Synergy
  2. Disadvantages of Partnerships
    a. Limited Life
    b. Mutual Agency
    c. Unlimited Liability
  3. General Versus Limited Partnerships
  4. Partners’ Capital and Drawing Accounts
  5. Formation of a Partnership
    a. Division of Income
  6. Admission of a New Partner
  7. Withdrawal of a Partner
  8. Liquidation of a Partnership
Chapter 14: Corporate Accounting
  1. Financial Statements
  2. Advantages and Disadvantages of the Corporation
  3. Taxes
  4. Organizational Structure
  5. Forming a Corporation
  6. Common Stock
  7. Dividends
  8. Retained Earnings
  9. Stock Subscription Plan
  10. Preferred Stock
  11. Cash Dividends Compared to Stock Dividends
  12. Stock Splits
  13. Treasury Stock
  14. Book Value per Share of Common Stock
    a. Book Value Versus Market Value per Share
Chapter 15: Bonds, Leases, and Mortgages Payable
  1. Disadvantages and Advantages of Bond Financing
    a. Disadvantages of Bond Financing
    b. Advantages of Bond Financing
  2. Classifying Bonds
  3. Other Features of Bonds
  4. Journal Entries for Issuance of Bonds
    a. Sold Between Interest Payment Dates
  5. Market Value Versus Face Value
    a. Bonds Issued at a Discount
    b. Bonds Issued at a Premium
  6. Year-End Adjusting Entries for Bonds Payable
  7. Effective Interest Rate Method of Bond Amortization
  8. Bond Sinking Fund
  9. Convertible Bonds
  10. Retirement of Bonds
  11. Leases
  12. Pensions
  13. Mortgages Payable
Chapter 16: Investments in Corporate Securities
  1. Accounting for Investments
    a. Investments in Debt Securities
    b. Short-Term Equity Investments
    c. Long-Term Equity Investments
  2. Valuation of Investments
    a. Held-to-Maturity Securities
    b. Trading Securities
    c. Available-for-Sale Securities
Chapter 17: Statement of Cash Flows
  1. The Purpose of the Statement of Cash Flows
  2. Classification of Cash Flows
  3. Conversion of Accrual Income to Net Cash Flows from Operations
    a. Direct and Indirect Methods
  4. Preparing the SCF
    a. Step 1: Determining Net Cash Flows from Operating Activities
    b. Step 2: Determining Net Cash Flows from Investing Activities
    c. Step 3: Determining Net Cash Flows from Financing Activities
    d. Step 4: Presenting Cash Flows by Activity on the SCF
    e. Interpreting the Results
  5. Accounting for Other Transactions
Chapter 18: Analysis and Interpretation of Financial Statements
  1. Analysis of Financial Statements
  2. Horizontal Analysis
  3. Vertical Analysis
  4. Trend Analysis
  5. Ratio Analysis
    a. Ratio Standards
    b. Purposes of Ratio Analysis
    c. Average Versus Ending Value
    d. Classes of Ratios
  6. Liquidity Ratios
    a. Current Ratio
    b. Acid-Test Ratio
    c. Operating Cash Flows to Current Liabilities Ratio
    d. Accounts Receivable Turnover
    e. Average Collection Period
  7. Solvency Ratios
    a. Debt-Equity Ratio
    b. Long-Term Debt to Total Capitalization Ratio
    c. Debt Service Coverage Ratio
    d. Number of Times Interest Earned Ratio
    e. Fixed Charge Coverage Ratio
    f. Operating Cash Flows to Total Liabilities Ratio
  8. Activity Ratios
    a. Inventory Turnover
    b. Property and Equipment Turnover
    c. Asset Turnover
    d. Paid Occupancy Percentage and Seat Turnover
    e. Complimentary Occupancy
    f. Occupancy Percentage
    g. Average Occupancy per Room
    h. Multiple Occupancy
  9. Profitability Ratios
    a. Profit Margin
    b. Gross Operating Profit Margin Ratio
    c. Gross Operating Profit per Available Room
    d. EBITD A Margin Ratio
    e. Return on Assets
    f. Return on Owners’Equity
    g. Earnings per Share
    h. Price Earnings Ratio
    i. Viewpoints Regarding Profitability Ratios
  10. Operating Ratios
    a. Mix of Sales
    b. Average Daily Rate
    c. Revenue per Available Room
    d. Average Food Service Check
    e. Food Cost Percentage
    f. Beverage Cost Percentage
    g. Labor Cost Percentage
    h. Limitations of Ratio Analysis

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