Jimmy operates a large service station, garage, and truck stop on Highway 95 near Plainview. His brother,
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Jimmy: The business is growing, and sometimes I need to show financial statements to parts suppliers and to the loan officers at the bank. The problem is, they don’t like the way I put ’em together. Bill: Jimmy, I know all about that. I can compile a jim-dandy set of financial statements for us.
Bert: No, Jimmy. Bill can’t do compiled financial statements for you. He’s not independent. Jimmy: I know, Mom didn’t let him outta the house ’til he was 24.
Bert: That so?
Jimmy: But, Bert, those fellas are always asking me about accounting policies, contingencies, and stuff like that. Said something about “footnotes.” I don’t want to fool with all that small print.
Required:
Think about the financial disclosure problems of Jimmy and Bill’s small business. What three kinds of compiled financial statements can be prepared for them and by whom?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
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