Accounting Principles and Procedures Flashcards
What information is included within a cash flow forecast?
Involves estimating your future sales and expenses to assess your future financial position.
This will include; timescales, types of income, expenses.
What is a cash flow statement?
A cash flow statement provides data regarding all cash inflows that a company receives from its ongoing operations and external investment sources. It is inclusive of VAT.
What information is included within a balance sheet?
Is a statement of of the business’ financial position showing its assets and liabilities at a given date, generally at the end of the financial year.
What is included within a profit and loss account?
Is a summary of a businesses income and expenditure transactions prepared on an annual basis.
What is a dunn and bradsheet report?
Assesses a companies payment behaviour and other risks relevant to contracting with a party.
Why is a D&B report important in projects?
It is a method of relaying a companies financial wellbeing to the client prior to them making the decision to enter into contract with that party.
What information is typically included on a D&B report?
- Company Profile
- Risk assessment
- Trade payments
- Parent company
What does a Bun and Bradsheet score show?
Risk relevant to differing scoring matrix’s, 1 to 100 with 100 being good.
Financial strength and a risk indicator
Would you typically review a Dun and Bradsheet report on behalf of a client?
No, this would be the responsibility of the appointed Quantity Surveyor.
If no QS, then would be for the clients financial team to review.
What is the role of an auditor?
Auditors inspect organisations’ financial accounts to ensure they’re correct and comply with the law.
What information would an auditor typically require?
The auditor is required to read all financial and non-financial information (other information) included in the annual report and to identify whether the other information is materially inconsistent with the financial statements
What laws would a surveying companies accounts be required to comply with?
- International Financial Reporting Standards
- Companies Act 2006
What does is included within a set of public limited accounts?
- Statement from Chairman / CEO
- Profit Loss
- Balance sheet
- Auditor’s report
What are the new terms for balance sheets and profit and loss statements?
- Balance sheet = Statement of Financial Position.
Profit and Loss = Income Statement.
What is issued in your companies public limited accounts?
- Chairmans statement
- Auditors report
- Income statement
- Statement of financial position
