Accounting Principles and Procedures

Question 1

What is UK GAAP?

Answer 1

Generally Accepted Accounting Practice in the UK, or UK GAAP, is the overall body of regulation establishing how company accounts must be prepared in the United Kingdom. Company accounts must also be prepared in accordance with applicable company law.

Question 2

What is IFRS?

Answer 2

International Financing Reporting Standards

IFRS are designed to bring consistency to accounting language, practices and statements, and to help businesses and investors make educated financial analyses and decisions. The IFRS Foundation sets the standards to “bring transparency, accountability and efficiency to financial markets around the world

Question 3

What is a cash flow statement?

Answer 3

Shows the business cash flow, including turnover and costings at a specific point in time.

Question 4

What is a balance sheet?

Answer 4

A summary of businesses assets and liabilities.

Question 5

What is a profit and loss account?

Answer 5

An income statement or profit and loss account is one of the financial statements of a company and shows the company’s revenues and expenses during a particular period