Introduction to Financial Accounting
BACC 152
Humber College
What is accounting?
Identifying
Recording
Communicating
Information and measurement system that identifies, records, and communicates relevant,
reliable, and comparable information about business activities in economic terms
Generally Accepted Accounting Principles (GAAP)
Refer to a common set of accounting principles, standards, and procedures issued by the
Financial Accounting Standard Board (FASB)
1. Business entity principle
Hospitality business and the owner are two separate “entities”
What does the business attempt to do
What does the owner attempt to do
Types of hospitality organizations
Sole proprietorship
● Hospitality business is owned by one person
● Unlimited liability (assume all risk)
Partnership
● Hospitality business is owned by two or more people (referred to as partners)
Corporation
BACC 152
Humber College
What is accounting?
Identifying
Recording
Communicating
Information and measurement system that identifies, records, and communicates relevant,
reliable, and comparable information about business activities in economic terms
Generally Accepted Accounting Principles (GAAP)
Refer to a common set of accounting principles, standards, and procedures issued by the
Financial Accounting Standard Board (FASB)
1. Business entity principle
Hospitality business and the owner are two separate “entities”
What does the business attempt to do
What does the owner attempt to do
Types of hospitality organizations
Sole proprietorship
● Hospitality business is owned by one person
● Unlimited liability (assume all risk)
Partnership
● Hospitality business is owned by two or more people (referred to as partners)
Corporation
