Accounting Priniciples And Procedures

Question 1

What’s are the contents of a plc accounts

Answer 1

Chairman’s statement
Independent auditors report
Income statement
Statement of financial position
Corporate governance report
Remuneration report
Other statutory information

Question 2

What is a balance sheet?

Answer 2

Statement of a businesses financial position showing its assets and liability at a given date usually the end of a financial year

Question 3

Examples of assets on a balance sheet

Answer 3

Cash, property, debtors and other investments held

Question 4

Liabilities can include

Answer 4

Borrowings, overdrafts, loans and creditors

Question 5

What is a profit and loss account?

Answer 5

Otherwise know as an income statement

Summary of company income and expenditure usually on an annual basis

Question 6

Who prepares audited accounts?

Answer 6

Chartered or certified accountant

Question 7

What does IFRS 16 implement?

Answer 7

International financial reporting standards

Leases have to be shown as a liability on a balance sheet - service charge accounted for differently