You evaluate loan requests as part of your job at Eastwood ...

[Pineapplelove6]

You evaluate loan requests as part of your job at Eastwood National Bank. One loan request you received is from Surfer Dude Supplies, a small proprietorship. Richard Tracy, the owner, is requesting 105,000 and brings you a trial balance (or statement of accounts) for his first year of operations ended December 31. REQUIRED: While you are willing to work with Richard, how would you explain to him that a complete set of financial statements from his accountant would be more useful for evaluating the loan request?

Question 2

The largest dollar amount of resources flowing into a capital projects fund normally will come from
 
  a. dedicated property taxes
  b. user charges
  c. bond proceeds
  d. interest on investments

[yasmina]

Answer to Question 1

A set of financial statements provides useful information concerning the economic condition of a company. For example, the balance sheet describes the financial condition of the company as of a given date and is useful in assessing the company's financial soundness and liquidity. The income statement describes the results of operations for a period and indicates the profitability of the company.
The statement of owner's equity describes the changes in the owner's interest in the company for a period. Each of these statements is useful in evaluating whether to extend credit to the company.

Answer to Question 2

c

[Pineapplelove6]

Correct answers!

[yasmina]

Great! Please up vote