Thursday, July 28, 2011

BUS 552 Financial Accounting - Final Project

CP2-6 p.99 Using Financial Reports: Evaluating the Reliability of a Balance Sheet

Frances Sabatier asked a local bank for a $50,000 loan to expand her small company. The bank asked Frances to submit a financial statement of the business to supplement to the loan-application. Frances prepared the following balance sheet.


Required:
The balance sheet has several flaws. However, there is at least one major deficiency. Identify it and explain its significance.
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