Accounting Principles and Procedures

Question 1

What are the three types of financial statements you may come across relating to a company?

Question 2

What is an asset / liability? Give an example of each

Question 3

What is the difference between financial and management accounts?

Question 4

What do you understand by the term Generally accepted accounting principles (GAAP)?

Question 5

How do companies know which reporting framework to comply with?

Question 6

Which reporting framework do public limited companies have to comply with?

Question 7

How would you assess the financial strength of an entity, e.g. for valuation?

Question 8

Can you tell me about a common financial measure?

Question 9

What is the acid test / ROCE / working capital ratio / gearing ratio / net assets per share?

Question 10

Can you tell me what the role of an auditor is?

Question 11

When are audited accounts needed and why?

Question 12

How do public limited company accounts differ?

Question 13

Tell me something you understand from the companies act 2006?

Question 14

Tell me what it means to prepare accounts in accordance with IFRS?

Question 15

What is the difference between UK GAAP and IFRS?

Question 16

What is the basis of valuation under IFRS 13?

Question 17

What is fair value?

Question 18

What has changed in relation to lease accounting / IFRS 16? When did the change come into effect?

Question 19

What is IFRS 102? What changes have been made to it? How has this impacted upon investment property

Question 20

What are statutory accounts?

Question 21

Why is good financial record keeping important to you?

Question 22

Tell me 3 ways you ensure that clients money is handled properly? What RICS guidance or schemes do you adhere to in doing so?