Accounting Principles and Procedures Flashcards
1
Q
What accounts must a company submit by law?
A
- Balance sheet
- Profit and loss statement
- Cash flow statements
2
Q
What is a balance sheet?
A
A summary of all business assets and liabilities
3
Q
What is on a balance sheet?
A
Assets, liabilities, debts, equity
4
Q
What is a profit and loss statement?
A
A statement which shows a companies revenues and expenses during a specific period.
5
Q
What is a cashflow statement?
A
A statement which tells you how much cash is leaving and entering the business.
6
Q
What is IFRS 16?
A
From International Financial Reporting Standards where businesses are required to account for the costs of a lease on their balance sheet.
7
Q
Why assess covenant strength?
A
To assess whether the tenant has the financial means of meeting the payment obligations in the lease
8
Q
What is IFRS 13?
A
It defines fair value
