Accounting Principles Flashcards
1
Q
What is a D&B score made of?
A
E.G ‘5A1’
5A - relates to tangible net worth
1 - risk indicator
5A = tangible net worth over £35M
1 = lowest risk
Net worth indicator goes down to 1A, then the lowest is B
Risk goes down to 4
2
Q
What is the profits test,
A
If net profit is over 3x the rent (for 3 consec years)
3
Q
What is a balance sheet?
A
Statement of assets and liabilities usually at end of financial year
Assets = cash, property
Liabilities = borrowings
4
Q
What is a profit and loss account?
A
Summary of business income and expenditure usually prepared on annual basis
5
Q
What is IFRS 16?
A
Leasing accounting standard
