Accounting Principles and Procedures AND Business Planning

Question 1

What is a profit and loss account?

Answer 1

Shows income and expenditures = net profit

Produced annually

Question 2

What is a balance sheet?

Answer 2

• Provides snap shot of what company owes and owns at a point in time
• Shows assets and liabilities

Question 3

What is the difference between a balance sheet and a Profit and loss account?

Answer 3

Balance sheet shows assets and liabilities at a specific moment in time

P+L summarises revenue, costs and expenses during a specific period

Question 4

What is involved in a PLC’s accounts?

Answer 4

Chairman’s Statement
Income Statement
Balance Sheet
Corporate Governance report

Question 5

What makes a good business plan?

Answer 5

Opportunities
Risks
Resource
Diversity and Inclusion
Sustainability

Question 6

What is a SWOT analysis?

Answer 6

• Tool to help with planning
• Can help evaluate companies competitive position