1. Accounting and the Business Environment


Asked by 6 years ago
398.7k points
  1. Accounting and the Business Environment
  2. Suppose you are the Guerreras banker, and they have given you this income statement. Would you congratulate them on their net income? If so, explain why. If not, how would you advise them to measure the net income of the business? Does the amount of cash in the bank measure net income? Explain.
  3. Prepare Tres Amigos balance sheet from their data. There are no net income or loss yet. Ethical Issues Ethical Issue 1-1 The board of directors of Xiaping Trading Company is meeting to discuss the past year's results before releasing financial statements to the bank. The discussion includes this exchange: Wai Lee, company owner: This has not been a good year! Revenue is down and expenses are way up. If we are not careful, we will report a loss for the third year in a row. I can temporarily transfer some land that I own into the company's name, and that will beef up our balance sheet. Brent, can you shave $500,000 from expenses? Then we can probably get the bank loan that we need. Brent Ray, company chief accountant: Wai Lee, you are asking too much. Generally accepted accounting principles are designed to keep this sort of thing from happening. Requirements
  4. What is the fundamental ethical issue in this situation?
  5. How do the two suggestions of the company owner differ?
  6. Recording Business Transactions Recording Business Transactions. Define the terms debit and credit. Explain how debits and credits affect the following: assets, liabilities, owners capital account, revenues and expenses. Respond to at least two of your classmates postings.
1. Accounting
maddy

1 Answer

Answered by 6 years ago
407.5k points

Oh Snap! This Answer is Locked

 1. Accounting and the Business Environment

Thumbnail of first page

Excerpt from file: Accounting Tutorial 1. Accounting and the Business Environment 1. Suppose you are the Guerreras banker, and they have given you this income statement. Would you congratulate them on their net income? If so, explain why. If not, how would you advise them to measure the net income of the business?

Filename: A000020.pdf

Filesize: 239.6K

Downloads: 7

Print Length: 2 Pages/Slides

Words: 784

Your Answer

Surround your text in *italics* or **bold**, to write a math equation use, for example, $x^2+2x+1=0$ or $$\beta^2-1=0$$

Use LaTeX to type formulas and markdown to format text. See example.

Sign up or Log in

  • Answer the question above my logging into the following networks
Sign in
Sign in
Sign in

Post as a guest

  • Your email will not be shared or posted anywhere on our site
  •  

Stats
Views: 880
Asked: 6 years ago

Related