Accounting, principles and procedures Flashcards
What is a creditor according to RICS?
A creditor is an individual or entity that is owed money by a debtor.
True or False: A debtor is someone who has a financial obligation to pay a creditor.
True
Fill in the blank: In the context of RICS, a __________ is a party that has lent money or extended credit.
creditor
What is one key responsibility of a debtor?
To fulfill the obligation of repaying the amount owed to the creditor.
Multiple Choice: Which of the following best describes the relationship between creditors and debtors? A) They are the same party B) Creditors provide funds to debtors C) Debtors provide funds to creditors D) There is no relationship
B) Creditors provide funds to debtors
True or False: Keeping accurate client accounts is essential for maintaining RICS compliance.
True
Fill in the blank: Client accounts must be kept __________ and reflect all transactions.
accurately
What is one key requirement for managing client accounts according to RICS standards?
Regular reconciliation of accounts
Which of the following is NOT a recommended practice for maintaining client accounts? A) Regular audits B) Ignoring discrepancies C) Detailed record-keeping
B) Ignoring discrepancies
What does RICS stand for?
Royal Institution of Chartered Surveyors
True or False: Company accounts are essential for assessing a company’s financial health.
True
Fill in the blank: Company accounts provide information on a company’s ______, liabilities, and equity.
assets
What is one primary purpose of company accounts in relation to RICS?
To ensure transparency and accountability in financial reporting.
Multiple Choice: Which of the following is NOT a component of company accounts? A) Balance Sheet B) Profit and Loss Statement C) Marketing Plan D) Cash Flow Statement
C) Marketing Plan
