Question: Your best friend who knows little about accounting recently started

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.

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  • CreatedMarch 25, 2015
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