Accounting Principles & Procedures

Question 1

What can you use to assess financial position over time?

Answer 1

• Balance Sheet
• Income Statement (P&L)
• Cash Flow Statement

Question 2

Talk me through a CPD session you’ve undertaken to improve your understanding of finance and accounting principles?

Answer 2

Understanding Accounts

Learnt about the differences between Balance Sheet, Income Statement & Cash Flow
- and what goes in to audited company accounts report

Question 3

How do Dun & Bradstreet reports provide information on covenant strength?

Answer 3

D&B Rating

• Financial Strength (H-5A)
• Risk Indicator (4-1)

Question 4

What other method can you use to assess financial credibility of a firm?

Answer 4

Profits method

• 3 years audited accounts
• Profit = 3 x rent (minimum 3 years)