Accounting principles Flashcards
1
Q
What is a balance sheet (bank statement)?
A
Shows the financial status - what is owned and owed.
2
Q
What is a cash flow statement?
A
Shows the money going in and out of a business.
3
Q
It’s been brought to your attention that funds are missing from the client monies account. Please tell us the process you would follow.
A
Reconciliation issue - Go through my records to check transaction amounts, dates, recipient.
4
Q
Where does equity (net worth) sit on a balance sheet?
A
After liabilities. Shows value after liabilities are subtracted from assets.
5
Q
What is the impact of International Financial Reporting Standards (IFRS) on your role?
A
Advising on what qualifies as capital expenditure versus operating costs, ensuring compliance with accounting standards.
