Accounting principles and procedures

Question 1

What is a balance sheet?

Answer 1

Measures the businesses financial position at a moment in time.

Shows its assets and liabilities

Question 2

What is an asset?

Answer 2

Asset can include debtors, property, cash, or other investments

Question 3

What is a liability?

Answer 3

Liability is a loan, overdraft, creditor, borrowings

Question 4

Profit and loss account/ Income statement?

Answer 4

Shows the the income and expenditure transactions of a firm usually on an annual basis.

Question 5

What is UK GAP

Answer 5

is the body of regulation on how company accounts should be published in UK.

Question 6

IFRS 16

Answer 6

purpose to have greater transparency and greater global comparison.

is a lease accounting standard whereby the full cost of leases have to be accounted for on the balance sheet.

Question 7

What is a D&B report?

Answer 7

Dunn and Bradstreet

Question 8

Limitations of D&B report

Answer 8

do not publish all information

They refer to a delinquency score which isn’t an industry wide term