FA for Cos - Supplementary question 1 Flashcards
1
Q
What are the 5 main elements of the accounts?
A
P+L, Balance sheet. Notes to accounts, Directors report and auditors report.
2
Q
What does the P+L show?
A
Performance over a period of time, up to AP
3
Q
What does the Balance sheet tell us?
A
Snapshot summary of company at a particular moment usually last day of the AP
4
Q
What do the notes show?
A
Supporting information to the main..accounts which may not be identified easily
5
Q
What does the directors report reveal
A
Includes dirs who have served, amount recommended as div and financial overview
6
Q
What does auditors report reveal
A
Written letter from auditor opining whether co comply with GAAP
7
Q
What do the 5 elements all have in common?
A
Have to compiled in statutory format
