Flashcards in Accounting Principles Deck (6)
What would you expect to find in a set of Public Limited Accounts
Independent auditors report
Income statement (profit and loss account)
Statement of financial position (balance sheet)
Corporate governance report
Other statutory information
What’s a profit and loss statement?
Same as an income statement
A summary of the business’s income and expenditure prepared usually on an annual basis
What is a balance sheet?
Same as a Statement of financial position.
It shows a businesses assets and liabilities at a given date (end of the financial year)
What is considered an asset and a liability
(Rental income from leases)
What’s the difference between audited accounts, management accounts and a consolidated set of accounts?
Audited accounts are prepared by a chartered or certified accountant
Management accounts are prepared for internal use my a business and are not audited
Consolidated set of accounts comprise a number of individual subsidiary accounts for a company within a single set of accounts