Accounting Principles and Procedures Flashcards
What is a Management Account?
Prepared for internal use by a business and are not audited.
What is a Statutory Account?
Legal requirement for external reporting.
What is a Balance Sheet?
A statement of the business’s financial position showing its assets and liabilities at an given date (usually end of the financial year).
What is an asset?
Cash, property, debtors, and investments held.
What are liabilities?
Borrowings, overdrafts, loans, and creditors.
What is a profit and loss account?
A summary of the business’s income and expenditure transactions, prepared on an annual basis.
What are audited accounts?
Prepared by a chartered certified accountant.
Would you advise your client on the tenants covenant strength?
No, I would supply them with any accounts available, but I would advise their financial advisor review the tenant’s position. I am not a chartered accountant so am unable to provide this review within the scope of my competence.
