Accounting Principles And Procedures

Question 1

What is a balance sheet?

Answer 1

Statement of financial position (assets and debt)

Question 2

What is a P&L statement?

Answer 2

Income statement (income and expenditure)

Question 3

What is a cash flow statement?

Answer 3

Actual receipts and expenditure including VAT

Question 4

Generally accepted accounting principles? GAAP

Answer 4

• guidelines to prepare financial statements

Question 5

International accounting standards

Answer 5

Globally comparable to promote transparency and efficiency in international financial markets

Question 6

IRR

Answer 6

Annualised rate of return on an investment

Question 7

NPV

Answer 7

Total value of a potential investment opportunity