Accounting principles and procedures (lvl 1)

Question 1

What are the three types of financial statement you may come across
relating to a company?

Question 2

What is an asset / liability? Can you give me an example of each?

Question 3

What is the difference between financial and management accounts?

Question 4

What do you understand by the term Generally Accepted Accounting
Principles (GAAP)?

Question 5

How do companies know which reporting framework to comply with?

Question 6

Which reporting framework do public limited companies have to comply with?

Question 7

How would you assess the financial strength of an entity, e.g. for a
valuation?

Question 8

Can you tell me about a common financial measure?

Question 9

What is the acid test / ROCE / working capital ratio / gearing ratio / net
assets per share?

Question 10

Can you tell me what the role of an auditor is?

Question 11

When are audited accounts needed and why?

Question 12

How do public limited company accounts differ?

Question 13

Tell me something you understand from the Companies Act 2006.

Question 14

Tell me what it means to prepare accounts in accordance with IFRS.

Question 15

What is the basis of valuation under IFRS 13?

Question 16

What is fair value?

Question 17

What has changed in relation to lease accounting / IFRS 16? When did the change come into effect?

Question 18

What is FRS 102? What changes have been made to it? How has this impacted upon investment property?

Question 19

What are statutory accounts?

Question 20

Why is good financial record keeping important to you?

Question 21

Tell me three ways you ensure that clients’ money is handled properly. What RICS guidance or Schemes do you adhere to in doing so?

Question 22

Explain your understanding of the VAT domestic reverse charge for
building and construction services.

Question 23

When do changes to the reverse charge apply from?

Question 24

What is the impact of the reverse charge on VAT accounting?

Question 25

Is VAT included in a balance sheet or a profit & loss account?

Question 26

How do you account for the impact of inflation when reporting to
clients?