Business Planning/Accounting

Question 1

What are the key financial statements that companies provide?

Answer 1

• The key financial statements are:-
• Profit and loss accounts.
• Balance sheets.
• Cash flow statements.

Question 2

What is the difference between management and financial accounts?

Answer 2

• Management accounts are for the internal use of the management team.
• Financial accounts are the company accounts that are required by UK law.

Question 3

What is the difference between a profit and loss account and a balance sheet?

Answer 3

• A profit and loss account shows the incomes and expenditures of a company and the resulting profit or loss.
• The balance sheet shows what a company owns (it’s assets) and what it owes (it’s liabilities) at a given point in time

Question 4

What is a SWOT analysis?

Answer 4

• A SWOT analysis can be used to analyse the internal strengths and weaknesses and external threats and opportunities of a company.
• This is carried out with a view to exploiting strengths and opportunities and mitigating weaknesses and threats