At a recent meeting of the board of directors of Greenway Medical Equipment Corporation, the company’s chief financial officer, Robert Ables, presented a draft set of financial statements for the year. It is Green- way’s corporate policy that the directors be allowed to review the financial statements before they are finalized.
Following the meeting, Mr. Ables received a memo from Dr. Clarise Locklier that included questions about the draft financial statements. Dr. Locklier is a relatively new member of the board of directors and is not familiar with some of the accounting terms and concepts used in the statements. Before voting on approval of the financial statements at the next board meeting, she has several questions she would like to have answered.
Required:
As Robert Ables, prepare a memo to Dr. Locklier addressing her concerns.