Accounting

Question 1

What’s are the different documents you’d like to see for a tenant’s credit check?

Question 2

What is the difference between the 3 major accounting documents?

Answer 2

1. Balance sheet = statement of a business’ financial position showing assets and liabilities on a given day (assets: cash, property, debtors vs liabilities: borrowings, overdrafts)
2. P&L account = summary of the business income and expenditure on an annual basis
3. Cashflow statement = shows the actual receipt and expenditure incl VAT

Question 3

What does turnover mean

Answer 3

Turnover = firm’s revenue

as opposed to

Profit = revenue - costs