Accounting Principles and Procedures

Question 1

What is a balance sheet now called?

Answer 1

Statement of financial position.

Question 2

What is a profit and loss statement called?

Answer 2

Income statement

Question 3

What are the main components of public limited accoutns?

Answer 3

• Chairman statement
• Independent auditors report
• Income statement
  -Statement of financial position
• Corporate governance report
• Remuneration report
• Other statutory info

Question 4

What are the components of Public Limited Company accounts?

Answer 4

• Chairman statement
• Independent auditors report
• Income statement (profit and loss account)
• Statement of financial position (balance sheet)
• Corporate governance report
• Remuneration report
• Other statutory information

Question 5

What is the auditors role?

Answer 5

An auditors role is to obtain assurance that the financial statements are accurate and free from errors or fraud and issue an auditors report including their auditors opinion.

Question 6

What is the difference between financial and management accounts?

Answer 6

Managemnet focuses on internal ystems and processes to provide internal targets and improvments.

Financial is used to demonstrate profitablity and financial performance and are viewed externally by investors etc.

Question 7

What is a statement of financial position?

Answer 7

Is a summary of a companies assets, liabilities and equity on a particular date.

Question 8

What is a income statement?

Answer 8

Reports financial position, including revenue, expenditure and profits.