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    Unit 2:: Learning Objectives Key Learning Points

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    Sitakanta Acharya

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    Unit 2:: Learning Objectives Key Learning Points

    Uploaded by

    Sitakanta Acharya
    12 views1 page

    Original Title

    AFMTA_Organizer_Module1Unit2

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    12 views1 page

    Unit 2:: Learning Objectives Key Learning Points

    Uploaded by

    Sitakanta Acharya

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Accounting and Financial Management for Travel Agencies

    Module 1: An Introduction to Accounting and Financial Management


    Unit 2: Basic Bookkeeping and Financial Management

    Learning Objectives Key Learning Points


    ‚‚Explain the benefits of using the
    PDCA cycle
    2.1 • Following the PDCA cycle for business planning involves
    ff Planning for the future

    ‚‚Read basic account statements ff Doing the daily work of running the business
    ff Checking to see if the business is running as planned
    ‚‚Use double-entry bookkeeping to
    account for basic transactions
    ff Acting to bring the business back on-plan
    ................................................................................................

    ‚‚Describe options for using credit


    cards to pay airlines
    2.2 •
    •
    The profit and loss statement reports revenue and expenses.
    The balance sheet summarizes what the agency owns, what it
    owes, and what is owed to the business owners.
    ‚‚Differentiate between liquidity
    and profitability 2.3
    ................................................................................................
    • When using double-entry bookkeeping, every transaction has
    two elements: a debit and a credit.
    • When expenses or assets increases, they must be recorded
    as debits. When they decrease, they’re recorded as credits.
    • When revenue or liabilities increases, they must be recorded
    as credits. When they decrease, they’re recorded as debits.
    ................................................................................................
    2.4 • All transactions have two equal accounting elements. These
    transactions are reflected both in the balance sheet and in the
    profit and loss statement.
    ................................................................................................
    2.5 • Every transaction must be recorded with an assigned account
    code. Accounts codes group similar revenue and expense
    transactions together in the same account number.
    ................................................................................................
    2.6 • When a customer makes a travel purchase by credit card, the
    card supplier assumes the risk of non-payment.
    • Agencies need to decide whether to pay airlines using
    customer credit cards, or their own payment system.
    ................................................................................................
    2.7 • An agency with liquidity has enough cash to pay its expenses
    in the short term. An agency needs to earn long-term profits to
    turn into cash so that it can continue to pay expenses.

    © 2016 International Air Transport Association. All rights reserved. Montreal—Geneva

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