Accounts Flashcards
What is a profit and loss account
The amount of money a business has after costs have been deducted from total revenue
What is a balance sheet
A financial statement that reports a company’s assets, liabilities and shareholder equity. A snapshot of what a company owns and owes
What is a cash flow statement
A statement that shows all inflows a company receives from operations and outflows a business pays during a set period.
When do you need to register for VAT
If a company reaches over £85,000 turnover in a year
What does a financial auditor do
Discovers errors and fraud writhing corporate documents
What is GAAP
Generally Accepted Accounting Procedures UK.
Accounting standard for the Uk
When is VAT Paid
On supply of goods and services deemed to be made in the UK, made by a taxable person.
Agricultural products are usually exempt
What is income tax
Tax on income through PAYE
What is corporation tax
Tax on profits from doing business at a rate of 19% as a limited company or a foreign company in the UK.
Taxable on profits from doing business, investments and selling assets for more than they cost
