Accounting principles and procedures

Question 1

how do you idenitfy a company’s financial position?/how do you check the company’s financial information to identify any potential risks?

Answer 1

I used CreditSafe to assess the credit risk and this is widely accepted by the market (sometimes the data is out of date) said MD of avison young

Question 2

how do you analyse profit and loss statements? what is that? it is also income statement

Answer 2

profit and loss statement is a summary of business income and expenditure, to assess financial performance and profitability, evaluate how effectively business is generating income/ to monitor and meaasure profit or loss, to calculate tax, compare past performance , calculate net income

Question 3

what is balance sheet?

Answer 3

showing business financial positions, showing its asset , equity and liability , making sure they can cover the liabilites

Question 4

what is cash flow statement?

Answer 4

shows all actual income and expenditure to include VAT, mainly for management purposes