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Accounting Question 1




Answer the following questions. There is no word count but answer them throughly.;Loretta Smith, president and owner of Custom Enterprises, applied for a $250,000 loan from City National Bank. The bank requested financial statements from Custom Enterprises as a basis for granting the loan. Loretta has told her accountant to provide the bank with a balance sheet. Loretta has decided to omit the other financial statements because there was a net loss during the past year.;Discuss the following questions;1. Is Loretta behaving in a professional manner by omitting some of the financial statements?;2. a. What types of information about their businesses would owners be willing to provide bankers? What types of information would owners not be willing to provide?;b. What types of information about a business would bankers want before extending a loan?;c. What common interests are shared by bankers and business owners?


Paper#77235 | Written in 18-Jul-2015

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