Cash includes Cash on Hand (House Banks), Demand Deposits, and Temporary Cash Investments. Temporary Cash Investments should be of demand nature or have maturities within 90 days at the time of purchase. Cash that is restricted formally for long-term purposes, such as property and equipment replacement reserves, should be included in Non current Assets.
Prepaid Expenses generally represents payments for items that will benefit future operating periods. Normally, the amounts are charged to operations based upon when the benefits are received. Examples include insurance, property taxes, rent, interest, maintenance, the unused net benefit under barter contracts, and other similar items.
[...] Investments in marketable equity securities and debt securities, where there is not the intent and ability to hold such securities to maturity, should be considered “available for sale” and reflected at market value with unrealised gains and losses being shown, net of tax effects, as a separate component of equity. Investments in debt securities where there is the intent and ability to hold such securities to maturity should be considered “held to maturity” and reflected at amortised cost. Property and Equipment This grouping of accounts includes owned Land; Buildings; Furnishings and Equipment and the cost of Leaseholds and Leasehold Improvements. [...]
[...] Examples include the unearned portion of amounts received or charged to non-guests for the use of recreational facilities, unredeemed gift certificate sales, unclaimed wages, and the net liability under barter contracts. Long-Term Debt This line item includes mortgage notes, other notes, and similar liabilities and obligations under capital leases that are not payable during the next 12 months. Other Long-Term Liabilities Long-term liabilities, being liabilities that will not require satisfaction within a year, that are not included under other captions should be included here. [...]
[...] Administrative and General Expenses Administrative and General Expenses include all those expenses that are considered as applicable to the entire property as a whole, rather than to any of the operating departments. Some examples of such expenses follow: Salary and wages and employee benefits for administrative employees of the hotel, including those of the General Manager and Financial Controller; bank interest and charges; information and communication system; credit and collection costs; audit, accounting and legal costs postage, printing and stationery; provision for Doubtful Receivables; and Travel expenses. [...]
[...] Allowance for Doubtful Receivables The Allowance for Doubtful Receivables represents an allowance for the proportion of trade accounts and other receivables estimated to be un- collectable. The allowance should be based on historical experience, specific appraisal of individual accounts, or other accepted methods. Accounts that become un-collectable should be charged to this account and recoveries of accounts previously written off should be credited to it. The balance at the end of any period, however, should be the best estimate of the portion of the trade accounts and other receivable that will not be collected. [...]
[...] Accrued Expenses Accrued Expenses represents expenses incurred but not payable until after the end of the operating period. Examples include salaries and wages and related benefits, vacation pay, interest, management fees, rent, taxes other than on income, and Utilities. Advance Deposits Advance Deposits represents amounts received that are to be applied as part of the payment for future sales of room and banquets. Income Taxes Payable Income Taxes Payable represents the estimated obligation for income taxes. Current Maturities of Long-Term Debt Current Maturities of Long-Term Debt includes the principal payments of mortgage notes, other notes and similar liabilities, and the instalments of capital leases due within the next 12 months. [...]
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