Introduction Words Flashcards
1
Q
What are Accounting Policies’?
A
They summarise rules that prepare financial statements. They are based on certain requirements from the accounting standards.
2
Q
What is the Statement of Financial Position?
A
It displays the financial positions of a business/ entity at a certain date. Also known as a balance sheet.
3
Q
What is the Statement of Changes in Equity?
A
It shows the owner’s interest from start to end of period.
4
Q
What is a statement of Cash Flow?
A
It shows the cash movements in and out of an entity.
5
Q
A
