Fantasy Graphics is a graphics arts design consulting firm Terri Bierman, its treasurer and vice president of finance, has prepared a classified balance sheet as of January 31, 2008, the end of its fiscal year This balance sheet will be submitted with Fantasy Graphics ' loan application to Boonevil...

It is unacceptable to prepare financial statements in such a way that users of the statements would ...

Fantasy Graphics is a graphics arts design consulting firm. Terri Bierman, its treasurer and vice president of

Question:

Fantasy Graphics is a graphics arts design consulting firm. Terri Bierman, its treasurer and vice president of finance, has prepared a classified as of January 31, 2008, the end of its fiscal year. This will be submitted with Fantasy Graphics' loan application to Booneville Trust & Savings Bank.
In the Current Assets section of the Terri reported a $100,000 receivable from Kent Miles, the president of Fantasy Graphics, as a trade account receivable. Kent borrowed the money from Fantasy Graphics in November 2006 for a down payment on a new home. He has orally assured Terri that he will pay off the account receivable within the next year. Terri reported the $100,000 in the same manner on the preceding year's whether it is acceptable for Terri Bierman to prepare the January 31, 2008, in the manner indicated above.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...