Accounting Principles & Procedures Level 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?

Question 3

Can you give me an example of one asset and one liability?

Question 4

What is the difference between financial and management accounts?

Question 5

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

Question 6

How do companies know which reporting framework to comply with?

Question 7

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

Question 8

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

Question 9

Can you tell me about a common financial measure?

Question 10

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

Question 11

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

Question 12

When are audited accounts needed and why?

Question 13

How do public limited company accounts differ to audited accounts?

Question 14

Tell me something you understand from the Companies Act 2006.

Question 15

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

Question 16

What is the difference between UK GAAP and IFRS?

Question 17

What is the basis of valuation under IFRS 13?

Question 18

What is fair value?

Question 19

What has changed in relation to lease accounting / IFRS 16?

Question 20

When did the change to lease accounting / IFRS 2016 come into effect?

Question 21

What is FRS 102?

Question 22

What changes have been made to FRS 102?

Question 23

How have the changes to FRS 102 impacted upon investment property?

Question 24

What are statutory accounts?

Question 25

Why is good financial record keeping important to you?

Question 26

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

Question 27

What RICS guidance or Schemes do you adhere to in ensuring clients’ money is handled properly?

Question 28

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

Question 29

When do changes to the reverse charge apply from?

Question 30

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

Question 31

Tell me about the Government-approved deposit schemes.

Question 32

What reporting framework does the Parish Council adopt, and why?