My Math Forum  

Go Back   My Math Forum > Science Forums > Economics

Economics Economics Forum - Financial Mathematics, Econometrics, Operations Research, Mathematical Finance, Computational Finance


Thanks Tree2Thanks
Reply
 
LinkBack Thread Tools Display Modes
April 4th, 2019, 05:36 PM   #11
Senior Member
 
Joined: Jun 2014
From: USA

Posts: 525
Thanks: 40

Quote:
Originally Posted by indiandonkey View Post

Why you should pay attention to a balance sheet:
Accountants work by tying out the balance sheet.

They will start with cash accounts (checkings and savings accounts) and reconcile the books with the bank statements. They'll review accounts receivable, inventory, and fixed assets, then make entries so that the balances of these accounts per the financials tie out to the actual amounts owed to the company by its customers, physical counts of goods on hand, and schedules showing each fixed asset's depreciation as of the balance sheet date, respectively. They'll do the same for liability accounts by, e.g., reconciling credit card accounts to the credit card statements and loan accounts to their bank balances. They'll accrue payables, such as for trade debts, payroll liabilities, and taxes. Finally, they'll make sure equity accounts are adjusted for things like contributions and distributions of capital, the issuance and redemption of stock, etc.

After having done all this, the accountant can then tell you what the company's income is without even having looked at the income statement. How? It's because the net of the income statement accounts (aka, net income) is just a change in equity that must be equal to the net of the changes to all of the other balance sheet accounts during the income statement's period.

Hope that helps.

Last edited by AplanisTophet; April 4th, 2019 at 05:41 PM.
AplanisTophet is offline  
 
April 4th, 2019, 05:50 PM   #12
Senior Member
 
Joined: Aug 2012

Posts: 2,311
Thanks: 706

Quote:
Originally Posted by AplanisTophet View Post
Accountants work by tying out the balance sheet.

They will start with cash accounts (checkings and savings accounts) and reconcile the books with the bank statements. They'll review accounts receivable, inventory, and fixed assets, then make entries so that the balances of these accounts per the financials tie out to the actual amounts owed to the company by its customers, physical counts of goods on hand, and schedules showing each fixed asset's depreciation as of the balance sheet date, respectively. They'll do the same for liability accounts by, e.g., reconciling credit card accounts to the credit card statements and loan accounts to their bank balances. They'll accrue payables, such as for trade debts, payroll liabilities, and taxes. Finally, they'll make sure equity accounts are adjusted for things like contributions and distributions of capital, the issuance and redemption of stock, etc.

After having done all this, the accountant can then tell you what the company's income is without even having looked at the income statement. How? It's because the net of the income statement accounts (aka, net income) is just a change in equity that must be equal to the net of the changes to all of the other balance sheet accounts during the income statement's period.

Hope that helps.
Do you ever use Zorn's lemma?
Maschke is offline  
April 4th, 2019, 07:51 PM   #13
Newbie
 
Joined: Jan 2019
From: india

Posts: 10
Thanks: 0

Thanks for all the replies .

I am only a final semester student of a commerce degree .

I don't have much experience dealing with accounting .

That is why i am getting a bit lost in the technical terms .

Anyway , all of these can be called

Book Keeping Transactions of various departments .

And every department has Book keeping Journal entries of the transactions .

1, Double entry system of book keeping has two columns for entering transactions

2, There are 5 accounting elements

3, Financial transaction involves buying and selling of objects

A, Real Accounts

Credit what goes out
Debit what comes in

B,Personal accounts

Credit the giver
Debit the receiver

C,Nominal Accounts

Credit all incomes and gains
Debit all expenses and losses

4, Profit and Loss account ( Income Statement )


Quote:
Beverage Sales
Food Sales
Other Sales, e.g., Offsite Catering, Speaking Engagements

Expenses

Cost of Beverage Sales
Cost of Food Sales
Any discounts given that even marginally affect bottom-line

Occupancy Expenses

Rent Expense
Insurance on Building
Security/Alarm Services
Janitorial
Building Repair and Maintenance (the costs of any routine repairs and maintenance are recorded in this account
Except repairs and maintenance expenses that can be capitalized to the fixed asset account because they extend the useful life of the asset
Property Taxes
Utilities
Disposal Services

Labor Expenses - Management

Officer Wages - Officer Salaries and Wages
Officer Benefits: Health Insurance
Officer Benefits: Meals and Discounts
Officer Benefits: Other
Management Wages - Management Salaries and Wages
Management Benefits: Health Insurance
Management Benefits: Meals and Discounts
Management Benefits: Other

Labor Expenses - General Employee

Employee Wages: Front of the House: Bartender
Employee Wages: Front of the House: Bussers
Employee Wages: Front of the House: Host/Hostess
Employee Wages: Front of the House: Servers
Employee Wages: Back of the House: Cooks
Employee Wages: Back of the House: Dishwashers
Employee Benefits: Health Insurance
Employee Benefits: Meals and Discounts
Employee Benefits: Other (employee benefits that do not fall into any other category are recorded in this account)

Operating Expenses

Bad Debt
Cash Over/Short
Credit Card Fees
Liability Insurance
Licenses and Permits
Corporate Taxes
Equipment Repairs and Maintenance
Equipment Lease
Glassware, Flatware, and Smallware
Marketing Expenses
Linens, Laundry, and Uniforms
Restaurant Décor
Menus and Drink Lists
Payroll Services Fees
Miscellaneous Expenses
Accounting Fees
Legal Fees
Tax Preparation Fees
Music and Entertainment
Telephone
Internet
Travel
Office Supplies
Bank Fees
Fines and Penalties
Postage and Mailing
Interest Expense
Depreciation Expense

This list for a restaurant highlights the most common income statement accounts that restaurants need to operate. The chart of accounts need to be customized to meet the unique needs of your organization but serves as a starting point.
5, Balance Sheet

A balance sheet lists your assets, liabilities, and equity. Assets are things you own, like equipment, inventory, and straight cash. Liabilities are things like vendor bills and restaurant equipment loans.



Your balance sheet also shows your equity, so your net worth; it’s what’s left over at the end of the day when assets are subtracted from liabilities. A negative number means you owe more money than you actually have. Your goal? Make this number positive. This could mean reducing operating costs or finding ways to generate more income to cover debts.



What it shows you:

Your actual financial position

Your debt load

I gave my books related to accounting to someone else to study 6 months ago .

I had lots of little notes prepared in it .

I have called that person and asked him to return all the books in half an hour .

indiandonkey is offline  
April 4th, 2019, 07:52 PM   #14
Senior Member
 
Joined: Jun 2014
From: USA

Posts: 525
Thanks: 40

Quote:
Originally Posted by Maschke View Post
Do you ever use Zorn's lemma?
No. It’s more of an assets = liabilities + equity thing. A direct application of Zorn’s lemma does not appear to me to be applicable in any way.
AplanisTophet is offline  
April 4th, 2019, 11:09 PM   #15
Senior Member
 
Joined: Feb 2016
From: Australia

Posts: 1,801
Thanks: 636

Math Focus: Yet to find out.
Can't this all be automated nowadays..?
Joppy is offline  
April 4th, 2019, 11:31 PM   #16
Senior Member
 
Joined: Aug 2012

Posts: 2,311
Thanks: 706

Quote:
Originally Posted by Joppy View Post
Can't this all be automated nowadays..?
Aplanis is a bot.
Maschke is offline  
April 4th, 2019, 11:33 PM   #17
Senior Member
 
Joined: Feb 2016
From: Australia

Posts: 1,801
Thanks: 636

Math Focus: Yet to find out.
Quote:
Originally Posted by Maschke View Post
Aplanis is a bot.
The Zorn's lemma response gave it away
Thanks from Maschke
Joppy is offline  
April 5th, 2019, 05:10 AM   #18
Math Team
 
Joined: Oct 2011
From: Ottawa Ontario, Canada

Posts: 14,415
Thanks: 1025

Quote:
Originally Posted by indiandonkey View Post
I got a job in a restaurant , and they have a list of account related information in an excel sheet .

I have to start working on it from tomorrow .

Where can i get a bit more proper information about the types of accounts in a restaurant ?
Hmmm....this is a real weird post....
Wonder if this guy is a joker...
Denis is offline  
April 5th, 2019, 10:31 AM   #19
Senior Member
 
Joined: Jun 2014
From: USA

Posts: 525
Thanks: 40

Quote:
Originally Posted by Maschke View Post
Aplanis is a bot.
The sum of the changes to balance sheet accounts during an accounting period can be represented as a maximal set I suppose if you really want to go out of your way to apply Zorn’s lemma.

Can confirm. I’m a bot. Takes one to know one.
AplanisTophet is offline  
April 5th, 2019, 10:55 AM   #20
Math Team
 
Joined: Oct 2011
From: Ottawa Ontario, Canada

Posts: 14,415
Thanks: 1025

An internet bot, also known as web robot, WWW robot or simply bot, is a
software application that runs automated tasks (scripts) over the Internet.
Typically, bots perform tasks that are both simple and structurally repetitive,
at a much higher rate than would be possible for a human alone.
Denis is offline  
Reply

  My Math Forum > Science Forums > Economics

Tags
accounts, restaurant, restuarant, types


« Macro-economics | - »

Thread Tools
Display Modes


Similar Threads
Thread Thread Starter Forum Replies Last Post
Probability in a Restaurant misosoup Advanced Statistics 4 May 29th, 2015 03:38 PM
types of radioactivity TwoTwo Physics 29 June 5th, 2014 02:19 AM
Restaurant Question Puzzled16 Geometry 1 April 9th, 2014 12:25 PM
Different types of nonlinearities mikkola Real Analysis 0 July 14th, 2008 01:36 PM
Types of numbers johnny Number Theory 2 November 3rd, 2007 02:32 PM





Copyright © 2019 My Math Forum. All rights reserved.