Accounting principles and procedures (lvl 1) Flashcards

1
Q

What are the three types of financial statement you may come across
relating to a company?

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2
Q

What is an asset / liability? Can you give me an example of each?

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3
Q

What is the difference between financial and management accounts?

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4
Q

What do you understand by the term Generally Accepted Accounting
Principles (GAAP)?

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5
Q

How do companies know which reporting framework to comply with?

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6
Q

Which reporting framework do public limited companies have to comply with?

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7
Q

How would you assess the financial strength of an entity, e.g. for a
valuation?

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8
Q

Can you tell me about a common financial measure?

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9
Q

What is the acid test / ROCE / working capital ratio / gearing ratio / net
assets per share?

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10
Q

Can you tell me what the role of an auditor is?

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11
Q

When are audited accounts needed and why?

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12
Q

How do public limited company accounts differ?

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13
Q

Tell me something you understand from the Companies Act 2006.

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14
Q

Tell me what it means to prepare accounts in accordance with IFRS.

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15
Q

What is the basis of valuation under IFRS 13?

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16
Q

What is fair value?

A
17
Q

What has changed in relation to lease accounting / IFRS 16? When did the change come into effect?

A
18
Q

What is FRS 102? What changes have been made to it? How has this impacted upon investment property?

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19
Q

What are statutory accounts?

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20
Q

Why is good financial record keeping important to you?

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21
Q

Tell me three ways you ensure that clients’ money is handled properly. What RICS guidance or Schemes do you adhere to in doing so?

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22
Q

Explain your understanding of the VAT domestic reverse charge for
building and construction services.

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23
Q

When do changes to the reverse charge apply from?

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24
Q

What is the impact of the reverse charge on VAT accounting?

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25
Q

Is VAT included in a balance sheet or a profit & loss account?

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26
Q

How do you account for the impact of inflation when reporting to
clients?

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