chapter 6 Flashcards
three examples of non current assets
goodwill and other intangible assets
property
investments
cash flow statement analyses the cash flows arising from which three main activities
operating
investing
financing
what is financial accounting
day to day recording of the company’s transactions, presented in financial statements for external consumption
what is management accounting
helps enable managers to fulfil their responsibilities
what accounting standards must a company listed on the london stock exchange use to prepare its consolidated accounts
international financial reporting standards
what is working capital
difference between current assets and current liabilities
how are assets employed calculated
adding non current assets to working capital
three examples of non current liabilities
bank loans
mortgages
bond issues
what is liquidity
amount of cash which a business has or has access to
what is solvency
measure of the excess of an organisation’s assets compared to its liabilities
what is the accounting equation
assets = equity +liability
what is working capital
money used to finance day to day trading activities
what are assets employed
sum of non-current assets to working capital
what is an income statement
amount of profit made in the last financial year
what is a cash flow statement
records the movement of cash in and of cash out that took place during the last financial year
