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Flashcards in Accounting Principles and Procedures Deck (9)
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1

What is the Primary Piece of Legislation governing companies in the UK?

Companies Act 2006

2

What is the companies Act 2006?

Main piece of legislation governing company law in the UK.

3

Name some components of the Companies Act 200

Incorporation process
Directors duties
Indirect shareholders rights

4

What are some of the amendments to companies act in Jersey?

additional provisions to liquidation and winding up

Additional notifications for notice periods to shareholder meetings

5

What tools measure a companies financial strength?

Profit and loss statement

6

What are management accounts?

These contain P&L accounts and cash flow forecasts

Provides

Better info - accurate info on company activity

Better control - trends in product services

7

What is a balance sheet?

This reports companies assets liabilities and shareholders equity at specific point in time.

8

How does a cash flow statement differ from a profit and loss statement?

CF - inflow of cash

P&L - summarises cost and expenses

9

Why is cash flow important?

To show if the company can pay expenses