Unit 3.4 Flashcards
For P + L and Balance sheet go to haiku for practice!!!!
Unit 3 and 4 - case studies and slides
Who are the 5 stakeholders in accounts
Investors, Managers, Banks, Creditors, Government
What is the purpose for Investors in final accounts?
Assess the value of the business compared to the share price
What is the purpose for managers in final accounts?
Measure performance against targets
What is the purpose for banks in final accounts?
Have to ask if they should lend to the business?
What is the purpose for Creditors in final accounts?
Is the business financially secure?
Does it have liquidity (i.e. cash) to pay its debts?
What is the purpose for Government and tax authorities in final accounts?
Calculate corporation tax
Is the business following tax and accounting rules?
What are the principles and ethics of accounts?
Integrity
-Honesty and with morals
Objectivity
-No bias, conflict of interest
Due care
-Competent
Confidentiality
-Do not disclose information to external parties
Professional behavior
-Comply with the law
What is a Profit and Loss
A summary of the business’ financial performance over a given time period
what is a balance sheet
(Remember order like image, practice haiku Unit 3/4)
Records the net worth of a business at one moment in time
What are intangible assets?
Items of monetary value owned by the company
That have no physical substance and are not financial instruments (e.g. bank accounts)
What are the different types of intangible assets?
Marketing-related
-Trademarks, logos, brand names, slogans, internet domain names
Customer-related
-List of customer names and emails
Contract-related
-Franchises, licensing agreements
Technology-related
-Patents, innovation
