You have just accepted your first job out of college, which requires you to evaluate loan requests at Beach Front National Bank. The first loan request you receive is from Surfer Dude Supplies, a small proprietorship. Marty Monroe, the owner, is
requesting $75,000 and brings you a trial balance (or Statement of Accounts) for his first year of operations ended December 31, 2010. REQUIRED: While you are willing to work with Marty, how would you explain to him that a complete set of financial statements from his accountant would be more useful for evaluating the loan request?.
A set of financial statements provides useful information concerning the economic condition of a company. For example, the balance sheet describes the financial condition of the company as of a given date and is useful in assessing the company's financial soundness and liquidity. The income statement describes the results of operations for a period and indicates the profitability of the company. The statement of owner's equity describes the changes in the owner's interest in the company for a period. Each of these statements is useful in evaluating whether to extend credit to the company.
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Basic earnings per share is computed as
A) Net Income / Total Number of Common Shares Outstanding. B) (Net Income ? Preferred Dividends) / Total Number of Common Shares Outstanding. C) (Net Income ? Preferred Dividends) / Weighted-Average Number of Common Shares Outstanding. D) Net Income / Weighted-Average Number of Common Shares Outstanding.
In a direct financing lease, the lessor's carrying value of the leased asset is less than its fair value
Indicate whether the statement is true or false
ANOVA is an efficient way to compare:
A) two groups averages B) two groups percentages C) three or more groups variances D) three or more groups averages E) three or more groups percentages
The Fifth Amendment privilege against self-incrimination applies only to natural persons and
not to corporations and partnerships. Indicate whether the statement is true or false