Accounting & Law Flashcards
1
Q
What are the two main elements of accounting
A
1 - identifying and summarising the financial events within an organisation
2 - reporting the relevant financial information to whom it concerns
2
Q
What must accounting records include?
A
- Entries showing all money received and expended by the company
- A record of all the assets and liabilities of the company
3
Q
What is Companies Act?
A
An act of parliament that serves as the primary source of company law in the UK
4
Q
What are the main aims of the Companies Act 2006?
A
- To modernise and simplify corporate law
- To codify common law
- To improve shareholders’ rights
5
Q
How long do companies legally need to keep accounting records financial statements for?
A
Private companies - 3 years
Public companies - 6 years
