Accounting principles & procedures L1 Flashcards
L1
What are the three types of financial statement you may come across relating to a company?
A
What is an asset / liability?
A
Can you give me an example of each?
A
What is the difference between financial and management accounts?
A
What do you understand by the term Generally Accepted Accounting Principles (GAAP)?
A
How do companies know which reporting framework to comply with?
A
Which reporting framework do public limited companies have to comply with?
A
How would you assess the financial strength of an entity e.g. for a valuation?
A
Can you tell me about a common financial measure?
A
What is the acid test / ROCE / working capital ratio / gearing ratio / net assets per share?
A
Can you tell me what the role of an auditor is?
A
When are audited accounts needed and why?
A
How do public limited company accounts differ?
A
Tell me something you understand from the Companies Act 2006.
A
Tell me what it means to prepare accounts in accordance with IFRS.
A
What is the difference between UK GAAP and IFRS?
A
What is the basis of valuation under IFRS 13?
A
What is fair value?
A
What has changed in relation to lease accounting / IFRS 16?
A
When did the change come into effect?
A
What is FRS 102?
A
What changes have been made to it?
A
How has this impacted upon investment property?
A
What are statutory accounts?
A
Why is good financial record keeping important to you?
A
Tell me three ways you ensure that clients’ money is handled properly.
A
What RICS guidance or Schemes do you adhere to in doing so?
A
Explain your understanding of the VAT domestic reverse charge for building and construction services.
A
When do changes to the reverse charge apply from?
A
What is the impact of the reverse charge on VAT accounting?
A
Is VAT included in a balance sheet or a profit & loss account?
A
How do you account for the impact of inflation when reporting to clients?
A
(N.b. Also see client money handling questions as per Ethics competency)
A
