Lighthouse Co is a graphics arts design consulting firm Robin Dover, its treasurer and vice president of finance, has prepared a classified balance sheet as of July 31, 2006, the end of its fiscal year This balance sheet will be submitted with Lighthouse 's loan application to Central Trust Savings...

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

Lighthouse Co. is a graphics arts design consulting firm. Robin Dover, its treasurer and vice president of

Question:

Lighthouse Co. is a graphics arts design consulting firm. Robin Dover, its treasurer and vice president of finance, has prepared a classified as of July 31, 2006, the end of its fiscal year. This will be submitted with Lighthouse's loan application to Central Trust & Savings Bank.
In the Current Assets section of the Robin reported an $80,000 receivable from Ron Knoll, the president of Lighthouse, as a trade account receivable.
Ron borrowed the money from Lighthouse in February 2005 for a down payment on a new home. He has orally assured Robin that he will pay off the account receivable within the next year. Robin reported the $80,000 in the same manner on the preceding year's whether it is acceptable for Robin Dover to prepare the July 31, 2006 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...