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Flashcards in Accounting Principles Deck (6):
1

How do you analyse a companies financial standing?

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

2

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.

3

Relevant legislation for company accounts?

Companies act 2006

4

Why are company accounts relevant

Assessing my company's strength or that of competitors

5

Management accounts vs. Company accounts

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

Company - required by law

6

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.