Accounting Flashcards
1
Q
3 main types of company accounts and managements.
A
- Balance Sheet (Statement of financial position)
- Income statement (Profits and loss)
- Cash Flow
2
Q
What is a Balance Sheet
A
- Statement of a business finances at any point in time.
- Assets = Liabilities + Equity
3
Q
What are Labilities
A
-Thinks the company owns someone (loans, overdrafts, credits etc)
4
Q
What are Assets
A
- Things the company owns (Cash, property, debtors etc)
5
Q
What is Equity
A
- The remained out the above.
- What the company has in the back pocket (Capital contributions, earnings etc)
6
Q
What is an income statement?
A
- A profit and loss account is a summary of the business income and expenditures transactions.
- On a certain date (usually annually).
7
Q
what’s is the difference between management accounts and Audit accounts?
A
- Management accounts, Prepared for internal use by a business and are not audited.
- Audited accounts, Prepared by Charted Accountant.
8
Q
what is a Cash Flow Statement?
A
- Finical statement that shows how cash has entered and exited a company during an accounting period.
9
Q
The contents of a PLC accounts
A
- Chairman’s Statement
- Independent auditors report.
- Income statement
- Balance Sheet
- Corporate governance report
- remuneration report
- other statutory information.
10
Q
IFRS 16
A
- Regulated by the International Accounting Standard Board
- its a lease account standard, requires leasing to be recorded on a balance sheet within the liabilities.
- Leases of less than 12 months are exempt.
11
Q
What does a consolidated set of accounts consist of?
A
- A number of individual sub-diary accounts for a company within a single set of accounts.
12
Q
GAAP accounting principles (10) (RCSPNPCPMU)
A
- Regularity:GAAP-compliant accountants strictly adhere to established rules and regulations.
- Consistency:Consistent standards are applied throughout the financial reporting process.
- Sincerity:GAAP-compliant accountants are committed to accuracy and impartiality.
- Permanence of Methods:Consistent procedures are used in the preparation of all financial reports.
- Non-Compensation:All aspects of an organization’s performance, whether positive or negative, are fully reported with no prospect of debt compensation.
- Prudence:Speculation does not influence the reporting of financial data.
- Continuity:Asset valuations assume the organization’s operations will continue.
- Periodicity:Reporting of revenues is divided by standard accounting periods, such as fiscal quarters or fiscal years.
- Materiality:Financial reports fully disclose the organization’s monetary situation.
- Utmost Good Faith:All involved parties are assumed to be acting honestly.
13
Q
What is the difference between a current asset and fixed asset?
A
- Current assets can be transferred into cash within one financial year.
14
Q
RICS Statement relating to client money handling?
A
- RICS Professional Standard: Client Money Handling, 2019
15
Q
10 principles of Stake holder engagement?
(CCCOPRRRSS)
A
- Communicate
- Consult early and often
- Remember they are only human
- plan it
- relationships are key
- Simple, but not easy
- Just Part manageing risk
- Compromise
- Understand what success is
- Take responitibly
