Accounting

Question 1

What are the two UK accounting frameworks?

Answer 1

UK GAAP
IFRS

Question 2

How would you know which accounting framework companies need to use?

Answer 2

IFRS - Publicly listed companies, such as LLDC or FTSE.

UKGAAP - private companies, they can also you IFRS.

Question 3

Where would you find company accounts?

Answer 3

For publicly listed companies this would be on their website.

Any other company - companies house.

Question 4

What is the role of an auditor?

Answer 4

They prepare and examine accounts

Question 5

what is a profit and loss account?

Answer 5

INCOME STATEMENT
indicates the amount of money left over after expenditure has been paid.

REVENUE - EXPENDITURE

Question 6

what is a cash flow?

Answer 6

cash flow is the movement of money in and out of a company account

Question 7

what is a balance sheet?

Answer 7

It shows a companies assets and then nets off the liability.

Question 8

what three accounts should companies provide?

Answer 8

B - balance sheet
P- profit and loss
C- cash flow

Question 9

what is the difference between management and statutory accounts?

Answer 9

Management accounts are for internal purposes.

Question 10

What is IFRS 16?

Answer 10

Leases over 12 months need to accounted for as a liability

Question 11

what is in a set of company accounts?

Answer 11

chairsperson statement
audit report
Profit and loss account
balance sheet
governance report.