Accounting Principles and procedures

Question 1

What is the difference between these statements: Profit and Loss, Cash flow and Balance sheets?

Answer 1

Profit and Loss- Amount of money left over after all expenses paid

Cash flow- Net flow of cash in and out of the business

Balance sheet- Snapshot of the companies finances, what it owns and what it owes. (Assets, liabilities, shareholders equity etc)

Question 2

What is the difference between GAAP and IAS?

Answer 2

GAAP (Generally Accepted Accounting Principles)- Accounting rules every country holds specific to each jurisdiction

IAS (International Accounting Standards)- Set of internationally recognised accounting standards

Question 3

What is a property as an entity?

Answer 3

Property disregarded from owner for tax purposes (still connected to the owner)