Accounting Principles and Procedures Flashcards
What is your fee target?
- £120,000.00
What is your departments fee target?
- £7 Million
What is meant by revenue?
- Total income a company generates from its core operations, primarily from the sale of goods or services.
What is a balance sheet?
- States the financial postition of a business.
What are the key factors considered within a balance sheet?
- Companies ASSETS and LIABILITIES
What time does the balance sheet reflect?
- The financial year.
What is considered an asset?
- Cash
- Property
- Debtors
- Investmnts
What is considered a liability?
- Borrowings
- Overdrafts
- Loans
- Creditors
What is a profit and loss account?
- An account based on a businesses income and expenditure annually.
- In short, an income statement.
What does a cash flow statement allow?
- It allows all reciepts and expediture to include VAT.
What is a management account?
- A management account is created for internal use only, and is NOT audited.
What is a business account?
- A business account IS audited; therefore, is prepared by a chartered/certified accountant.
What is a cash flow statement?
- A statement which provides a detailed view of a company’s cash inflows and outflows.
Why is a cash flow statement important?
- Helps in conducting financial planning and strategies to achieve objectives.
What are the contents of a set of public company accounts include? (Name 4)
- Chairman Statement
- Independant Auditor Report
- Income Statement (Profit / Loss Account)
- Balance Sheet
- Corporate Governance Report
- Remuneration Report
- Other Statutory Information
What is an IFRS 16?
- International Financial Reporting Standards
- Accounting standard for leases
What is an IFRS 16 used for?
- Reporting a properties liabilities
How can IFRS 16 be reported?
- Balance Sheet
With regards to IFRS 16, would an occupiers oblgation to pay rent be considered a liability?
- Yes
With regards to IFRS 16, would an occupiers oblgation to pay service charge be considered a liability?
- No
