Accounting principles & procedures L1 Flashcards
What are the three types of financial statement you may come across relating to a company?
Three types of financial statement are
What is an asset?
Can you give me an example?
An asset is
An example of an asset is
What is a liability?
Can you give me an example of a liability?
A liability is
An example of a liability is
What is the difference between financial and management accounts?
Financial accounts are
Management accounts are
What are generally accepted accounting principles (GAAP)?
Generally accepted accounting principles are
How do companies know which reporting framework to comply with?
Companies know which reporting framework to comply with by
Which reporting framework to public limited companies have to comply with?
Public limited companies have to comply with
How would you assess the financial strength of an entity e.g. for a valuation?
I would assess the financial strength of an entity by
Can you tell me about a common financial measure?
A common financial measure is
Can you tell me about the role of the auditor?
The Role of the auditor is to
When are audited accounts required and why?
Audited accounts are required
How do public limited company accounts differ?
Public limited company accounts differ
What does it mean it’s prepare accounts in accordance with IFRS?
Preparing accounts in accordance with IFRS means
What is the difference between UK GAAP and IFRS?
UK GAAP is
IFRS is
What is the basis of valuation under IFRS 13?
The basis of valuation under IFRS 13 is
