Accounting principles and procedures

Question 1

Accounting principles and procedures

Answer 1

1 – ROCE - (Net income/Total assets)

2 – Gearing - Debt/Shareholder Funds

Question 2

What would you expect seen a set of plc accounts?

Answer 2

1. Chairman statement
2. Independent auditors report
3. Profit and loss account
4. Balance sheet
5. Corporate governance report
6. Remuneration report
7. Other statutory information

Question 3

What is the difference between a profit and loss statement
and a balance sheet

Answer 3

Balance sheet – Assets and liabilities at a given date

Profit and loss – Summary of the businesses income and expenditure prepared on an annual basis

Question 4

What is the role of an auditor?

Answer 4

To obtain reasonable assurance financial statements are free from material misstatement.

Question 5

What is IFRS16?

Answer 5

The full cost of the lease has to be accounted for on the balance sheet.

Question 6

What is a D&B rating

Answer 6

And indicated that assesses the creditworthiness of a company based on the financial strength of the business.

Question 7

What are the different forms of business vehicle?

Answer 7

Sole trader
Partnership
Limited liability partnership
Limited liability company
Plublic limited company

Question 8

How does your team undertake business planning?

Answer 8

SWOT
Pulled together a three-year plan
Review billings against targets/ and previous years