SIT30616: In Your Own Words Provide A Short Definition: Certificate III In Hospitality Assignment, VU, Australia

Part A – Written or Oral Questions

1. In your own words provide a short definition of the following terms:

a. Assets

b. Liabilities

c. Equity

d. Cost of sales

e. Income

f. Expense

2. For each of the above provide an example related to the hospitality industry.

3. What is the first and last day of the Australian financial year? Are there any other reporting periods observed by hospitality businesses?

4. Financial Reporting has two methods of accounting

5. Explain the two methods and give examples of which reporting method can be used by what size organization.

6. Explain the difference between fixed costs and variable costs.

7. Give an example of each of the above in the hospitality industry

8. What business performance indicators and benchmarks could be used for decision-making purposes in the hospitality industry?

9. Match the following sorts of financial information with their definition:

a. Source documents

b. Journal entries

c. Transaction reports

d. Account summaries & balances

e. Balance sheets

f. Profit & loss statements

g. Invoices

h. Budget reports

i. Expenditure reports:

i. Details budgeted spending vs actual spending

ii. Shows assets, liabilities, and owner’s equity

iii. Original documents in paper form that prove a transaction has taken place

iv. Report detailing specific information, such as EFTPOS and banking records

v. Details products and services provided to a customer

vi. A basic document that details the financial transactions of a company

vii. Details budgeted figures compared to actual figures

viii. Shows the revenue and expenses of a business over a period of time

ix. These can be obtained from the bank, and should maintain strict vigilance over

10. Why is it important for a hospitality business to review the above types of financial information regularly?

11. What are the basic rules underpinning double-entry accounting?

12. Research an accounting software package used in the hospitality industry,

Part B – Research Project

1. Provide a short definition for the following terms (in your own words – simply copying from the internet will result in zero marks):

a. Ledgers

b. Subsidiary ledgers

c. Receipt

d. Disbursements

e. Accounts payable

f. Debtors

g. Creditors

h. Cash flow

2. Provide a short description of the following Hospitality industry terminology:

a. Guest account

b. Inventory

c. Revenue management

3. What are the GST reporting requirements for a hospitality business?

Part C – Case Study:

1. Below is a Balance Sheet for Fat Freddie’s Fab Frogs for 2015 & 2016. From the balance sheet, and for both years calculate:

a. The proportion of the business finances by debt and equity

b. The current ratio

c. Gross profit ratio

d. Net profit (before tax) ratio

4. Why should appropriate financial information be shared with colleagues?

Part D – Case Study:

Create a cash flow statement for Frankie’s Fire & Fusion Café for January – March 2015 from the information provided below. The opening cash balance is $1,250.

Fat Freddie’s Fab Frogs Balance Sheet for year ending 30 June
2015 $	2016 $
Assets Cash Accounts Receivable Inventory Plant & Equipment TOTAL Liabilities Accounts payable Provision for tax Bank Overdraft Owner’s Equity Retained profit Debentures Ordinary Shares ($2 each) TOTAL	10 400 41 600 83 200 228 800 364 000 44 928 7 072 – – 104 000 208 000 364 000	66 560 128 960 208 000 403 520 46 800 9318 15 600 19 802 104 000 208 000 403 520

January	February	March
Sale of Goods & Services	$ 101,000	$ 109,000	$ 115,000
Utilities	$ 3,110	$ 3,150	$ 3,180
Tax Paid	$ 31,000
Wages	$ 30,500	$ 33,300	$ 34,750
Raw Materials	$ 38,000	$ 39,300	$ 40,900
Interest Received	$ 300	$ 300	$ 300
Interest on Loan	$ 8,000	$ 8,000	$ 8,000
Equipment Purchase	$ 11,300
Marketing & Advertising	$ 700	$ 850	$ 900
Asset Sale	$ 1,100
General Office Expense	$ 400	$ 400	$ 400
Capital Contribution	$ 25,000
Rent	$ 5,000	$ 5,000	$ 5,000
Drawings	$ 1,000	$ 1,000	$ 1,000