Mandatory - Accounting Principles and Procedures

Question 1

Operating profit?

Answer 1

Profit before taxation

Question 2

What are some typical formats for management accounts?

Answer 2

In our industry, by team, by sector, by professional service offered
On a weekly, monthly, quarterly basis

Question 3

What needs to be included within company accounts

Answer 3

Cashflow statement
Profit and loss account
Balance sheet
Directors report saying how the accounts have been prepared
Audit confirmation signed to say they are a true and fair view

Question 4

Who do you submit company accounts to?

Answer 4

Companies House
Also copies must go to all shareholders and anyone who attends the company’s financial meetings

Question 5

What is a Dunn and Bradstreet report?

Answer 5

Credit report
Similar to a personal Experian check
Shows how likely lenders are to give them credit
Shows if they’ve paid bills on time
Rating is on a scale of 1-5
Shows profit and size of company
Net worth