Accounting

Question 1

3 main types of company accounts and managements.

Answer 1

• Balance Sheet (Statement of financial position)
• Income statement (Profits and loss)
• Cash Flow

Question 2

What is a Balance Sheet

Answer 2

• Statement of a business finances at any point in time.
• Assets = Liabilities + Equity

Question 3

What are Labilities

Answer 3

-Thinks the company owns someone (loans, overdrafts, credits etc)

Question 4

What are Assets

Answer 4

• Things the company owns (Cash, property, debtors etc)

Question 5

What is Equity

Answer 5

• The remained out the above.
• What the company has in the back pocket (Capital contributions, earnings etc)

Question 6

What is an income statement?

Answer 6

• A profit and loss account is a summary of the business income and expenditures transactions.
• On a certain date (usually annually).

Question 7

what’s is the difference between management accounts and Audit accounts?

Answer 7

• Management accounts, Prepared for internal use by a business and are not audited.
• Audited accounts, Prepared by Charted Accountant.

Question 8

what is a Cash Flow Statement?

Answer 8

• Finical statement that shows how cash has entered and exited a company during an accounting period.

Question 9

The contents of a PLC accounts

Answer 9

• Chairman’s Statement
• Independent auditors report.
• Income statement
• Balance Sheet
• Corporate governance report
• remuneration report
• other statutory information.

Question 10

IFRS 16

Answer 10

• Regulated by the International Accounting Standard Board
• its a lease account standard, requires leasing to be recorded on a balance sheet within the liabilities.
• Leases of less than 12 months are exempt.

Question 11

What does a consolidated set of accounts consist of?

Answer 11

• A number of individual sub-diary accounts for a company within a single set of accounts.

Question 12

GAAP accounting principles (10) (RCSPNPCPMU)

Answer 12

1. Regularity:GAAP-compliant accountants strictly adhere to established rules and regulations.
2. Consistency:Consistent standards are applied throughout the financial reporting process.
3. Sincerity:GAAP-compliant accountants are committed to accuracy and impartiality.
4. Permanence of Methods:Consistent procedures are used in the preparation of all financial reports.
5. Non-Compensation:All aspects of an organization’s performance, whether positive or negative, are fully reported with no prospect of debt compensation.
6. Prudence:Speculation does not influence the reporting of financial data.
7. Continuity:Asset valuations assume the organization’s operations will continue.
8. Periodicity:Reporting of revenues is divided by standard accounting periods, such as fiscal quarters or fiscal years.
9. Materiality:Financial reports fully disclose the organization’s monetary situation.
10. Utmost Good Faith:All involved parties are assumed to be acting honestly.

Question 13

What is the difference between a current asset and fixed asset?

Answer 13

• Current assets can be transferred into cash within one financial year.

Question 14

RICS Statement relating to client money handling?

Answer 14

• RICS Professional Standard: Client Money Handling, 2019

Question 15

10 principles of Stake holder engagement?
(CCCOPRRRSS)

Answer 15

1. Communicate
2. Consult early and often
3. Remember they are only human
4. plan it
5. relationships are key
6. Simple, but not easy
7. Just Part manageing risk
8. Compromise
9. Understand what success is
10. Take responitibly

Question 16

What does GAAP stand for?

Answer 16

General Accepted Accounting Principals

Question 17

What’s a Signatory?

Answer 17

Someone that approves clients spending

Question 18

Who gets the interest on Clients money?

Answer 18

Client
Unless arranged specified

Question 19

6 areas of good practise in Client Handling money? (HPPRRC)

Answer 19

1. Holding
2. Providing Info
3. Receipts
4. Payments
5. Records and controls
6. Compliance