Accounting principles and procedures Flashcards
What is a Dun and Bradstreet report
Used to assess a company’s financial viability. Scores on their financial strength and risk of failure
What is VAT
Value added tax, charged on most goods and services to VAT registered companies.
What is capital expenditure?
Expendatures creating future benefits.
Difference between a profit and loss statement and a balance sheet?
Balance sheet presents the companies assets and liabilities at a moment in time.
Profit and loss shows the profitability by showing profit and loss, quarterly/annualy.
How do you consider overheads when providing a fee quote?
Aware of business running costs.
Have hourly rates which are calculated based on this.
What is the difference between financial accounts and management ccounts
Financial accounts submitted annually, management accounts are not. Financial done by a chartered accountant
What is a balance sheet
a list of assets and liabilities.
What is equity
net assets
What should a business retain?
Records of sales, receipts, record of money taken out.
What is your firms invoice procedure
14 days payment terms
If it goes over, then letter goes out
if still no payment: polite letter, formal letter, triggering letter.
How do you calculate a fee
review scope to identify time required
work out staff rates
check if any framework is in place
determine any other fees (mileage etc)
Why do we need financial reporting
To regulate and prevent thread
To transmit information on the health to the business to investors
To help directors manage the business
What items are included in a cost plan
Initial fees
design fees
stat fees
enabling works
demo
building works
m&e
client orders
What would assets include
Cash in the bank
Stocks
Tangible assets (property)
What would liability include?
Money owed
Loans
Money owed to HMRC
