Accounting Principles Flashcards
What is a statement of profit and loss?
A financial statement that summarizes the revenues, costs and expenses incurred during a specified period - usually tax year
What is a cash flow statement?
Financial statement summarizing amount of cash entering and leaving a company. It shows how well a company manages its cash position
What is a balance sheet?
Statement showing companies assets and liabilities at a point in time
Give me some examples of how you forecast your individual fee income?
Breakdown the task into how many hours I expect to take, including travel time. I look at tools/expenses needed and calculate an hourly rate on that basis to be profitable.
What is the difference between a profit and loss statement and a balance sheet?
Profit and loss shows flow throughout a term, balance sheet is a snapshot in time
What do companies need to provide every year to comply with Companies Act 2006?
Financial accounts - Balance sheet, Profit and loss statement
What information does an RICS firm need to provide in their annual return?
- annual turnover
- nature of clients
- client money handling procedure
- complaints log
- staff information
- CPD/training
What basic management systems would you put in place for financials?
income statements, balance sheets, and cash flow statements
What are the key financial statements that all companies must provide/What are company accounts?
Profit and loss account, balance sheet, cash flow statement
What’s the difference between management accounts and financial accounts?
Management accounts are for the internal use of management team. Financial accounts are the company accounts required by law.
What is the difference between a profit and loss account and a balance sheet?
A profit and loss account shows the incomes and expenditures of a company and the
resulting profit or loss.
The balance sheet shows what a company owns (assets) and what it owes
(liabilities) at a given point in time.
