Accounting Principles Flashcards

1
Q

Tell me about some requirements under the Companies Act 2006?

A
  • Annual financial statements are to be
    audited, as applicable to each category of company.
  • Directors must prepare account for the company every financial year and give a fair and true representation to the state of affairs, the business and profit or loss of the company.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a balance sheet?

A

Its a snapshot at a certain point in time of a businesses financial position, showing its assets and liabilities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is a profit and loss statement?

A

Shows the businesses income and expenditure over a period of time, usually prepared annually

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a cash flow statement?

A

Shows the business actual cash flows, can be used to forecast. Not included in annual accounts but used for management purposes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the difference between finance accounts and management accounts?

A

Finance are formal accounts prepared for auditing

Management accounts are for internal purposes and not audited.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does IFRS16 say?

A

That leases now must be included as an asset or liability on the balance sheet.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly