Accounting Flashcards
(13 cards)
Why is it important to review accounts?
- To understand performance and financial stability
- To understand if changes to the business planning need to happen.
- To identify areas for improvement/efficiencies.
What is fee forecasting and why is it important?
Looking ahead at the estimated finances of the company in terms of fees. This is important as it allows the future financial position to be forecast.
What is income?
The actual amount of money a company earns.
What is profit?
The surplus amount left after deducting all the expenses from the revenue.
What are the 3 main financial statements used in accounting, to report on a company’s financial period?
- Balance sheet
- Cash flow statement
- Income statement
What is a balance sheet?
Statement of a financial position with assets and liabilities at a given date
What is a cash flow statement?
A financial statement showing the incoming and outgoing money.
What is an income statement?
A financial statement also known as profit and loss account. Shows revenue and expenses.
What is an asset?
- Cash
- Property
- Investments
When does the financial year run from?
6th April to 5th April
What is a KPI?
- Key performance indicator.
- A measurable and quantifiable measure used to track progress towards aims and objectives.
- They are usually agreed with a client in the instruction stage.
Can you give an example of a KPI?
- Time taken to agree and submit claim to client for payment for NG.
- Time taken to secure all consents to enable a scheme to go ahead for NGET.
What would you find in public limited accounts?
- Chairmans statement
- Independent auditor report
- Profit and Loss
- Balance Sheet
- Corporate Governance Report
- Remuneration Report
- Other Statutory information
