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Flashcards in Accounting Principles Deck (6):

How do you analyse a companies financial standing?

Dun and Bradstreet
Gearing ratio (debt / equity)
How long it's been trading


What is a cash flow ?

This is the summary of the actual or anticipated ingoing and outgoing of cash in a company over the accounting period. A cashflow statement measures a company's ability to pay its short term debts.


Relevant legislation for company accounts?

Companies act 2006


Why are company accounts relevant

Assessing my company's strength or that of competitors


Management accounts vs. Company accounts

Management - internal, more detailed, no need to be published

Company - required by law


Profit and loss vs. Balance sheet?

Profit and loss covers income and expenditure of company and resulting profit or loss over a accounting period.

Balance sheet shows company sets and liabilities at a given point in time.