Your best friend, who knows little about accounting, recently started a landscaping business. During one of your conversations he made the following statements:
I don’t need financial statements prepared by an accountant. All I really need to know is how much money is in my business’s bank account so I can pay the bills when they come in. If I need a loan, the bank will demand appraisals of all my property. Why would I need financial statements that list what I paid for the property instead of what it’s worth today?
Respond to your friend’s statements. Be prepared to present your opinions to the class.