FSS LEC unit 5

• Accounting - An information system that identifies, records, and communicates the economic events of an organization to interested users.
• Identify - Select financial transactions
• Record - Classify and summarize
• Communicate - Prepare financial reports, analyze and interpret them.
• Financial accounting -  branch of accounting that focuses on recording, summarizing, and reporting financial transactions
• Revenue - money taken in
• Expense - the cost of everything required to operate business.
• Profit - what remains after all expenses have been paid.
• Assets -  items owned by the business.
• Liabilities - amounts the business owes.
• Owner’s equity - the difference between assets and liabilities  is equal to the claim that owners have on the assets.
• Cost accounting - focuses on classifying, recording, and reporting business expenses.
• Tax accounting - deals with the accurate and timely filing of tax forms, payments, and documents required by the government.
• Auditing - branch of accounting that is concerned with the truthfulness and accuracy of financial reports. The purpose of an audit is to point out weaknesses and /or irregularities and to prevent accounting fraud
• Managerial accounting - is the branch of accounting where transactions are recorded and analyzed for the purpose of making management ideas.
• Uniform System of Accounts - An agreed-upon system of accounting for a particular segment of the industry.
• Uniform System of Accounts - A way for accounting and financial professionals to report the financial activities of a foodservice industry.
• Assets = Liabilities + Equity - This formula forms the foundation of the balance sheet and the income statement.
• Financial Record - comprehensive management information system that links up with other functions that influence the financial well-being of the foodservice operation.
• Purchasing and Receiving Records

  • Purchase orders
  • Invoices
  • Receiving records
  • Requisitions
  • Discrepancy reports
• Storage and Storeroom Records

  • Requisition or storeroom issue records
  • Perpetual inventory
  • Physical inventory
• Food Production

  • Menu
  • Standardized recipes
  • Portion control standards
  • Production schedule and leftovers report
  • Forecasts and tallies
• Service records - Documents used to collect and track actual demand for eating occasions and individual menu items
• Income and Expense records - A record of daily transactions is essential for the preparation of monthly statements.
• Sales and Cash receipts - Business procedures are needed for the accounting of cash received in foodservice operations. These produce summary print-outs and proofs of cash collected.
• Point of Sale - prints an itemized receipt for each customer; calculates automatically the change to be returned to the customer
• Income Statement - summary of financial information for a defined accounting period.
• Balance Sheet - Listing of assets, liabilities, and capital of an operation as of a specific date.
• Current assets -  cash and other assets that will be converted to cash.
• Fixed assets - permanent
• Current liabilities - those that must be paid monthly/bi-annually/yearly
• Long-term liabilities - those that will not be paid within the coming year
• Member’s Equity - capital or equity section of the balance sheet includes the portion of the business that represents the owners interests
• Ratio Analysis - Used to evaluate a number of issues with an entity, such as its liquidity, efficiency of operations, and profitability
• Liquidity - short-term obligations like internet connection, communications, electricity and other operational expenses.
• Solvency - indicates whether the company's cash flow is sufficient enough to meet its long-term liabilities and measure the financial health.
• Activity - a type of financial metric that indicates how efficiently a company is leveraging the asset on its balance sheet to generate more income, revenues, and cash.
• Profitability - set of measurements used to determine the ability of a business to create more earning
• Operating - generating revenues and in controlling expenses
• Marketing - An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders .