Accounting

Question 1

What is UK GAAP?

Answer 1

Generally Accepted Accounting Principles

The body of regulation establishing how company accounts should be published in the UK.

Question 2

What is the purpose of a balance sheet?

Answer 2

It assesses the financial position of a company at a given date (usually at the end of the financial year) and includes details of the companies assets (creditors) and liabilities (debtors)

Question 3

What is an income statement?

Answer 3

a financial statement that shows you the company’s income and expenditures. It also shows whether a company is making profit or loss for a given period.

Question 4

What was the purpose of IFRS 16

Answer 4

Greater Transparency and offers greater global comparison (international standard)

Question 5

What is an asset and what is a liability?

Answer 5

Asset: Owned properties, debtors & cash

Liability: Creditors, leases, overdrafts etc

Question 6

What is included in your firm’s accounts and what sub documents?

Answer 6

Independent auditors report

Income Statement (Profit and loss account)

Balance sheet (statement of financial position)

Remuneration report