Accounting principles & procedures

Question 1

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

Question 1

What is an asset / liability?

Question 2

Can you give me an example of each?

Question 3

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

Question 4

How do companies know which reporting framework to comply with?

Question 5

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

Question 6

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

Question 7

Can you tell me about a common financial measure?

Question 8

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

Question 9

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

Question 10

When are audited accounts needed and why?

Question 11

How do public limited company accounts differ?

Question 12

Tell me something you understand from the Companies Act 2006.

Question 13

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

Question 14

What is the difference between UK GAAP and 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?

Question 18

When did the change come into effect?

Question 19

What is FRS 102?

Question 20

What changes have been made to it?

Question 21

How has this impacted upon investment property?

Question 22

What are statutory accounts?

Question 23

Why is good financial record keeping important to you?

Question 24

Tell me three ways you ensure that clients’ money is handled properly.

Question 25

What RICS guidance or Schemes do you adhere to in doing so?

Question 26

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

Question 27

When do changes to the reverse charge apply from?

Question 28

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

Question 29

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

Question 30

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