chapter 16

chapter 16 - Chapter 16 Mike Solomich 1/25/09 1. The...

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Chapter 16 Mike Solomich 1/25/09 1. The balance sheet is a statement of the financial condition of a company as of a moment in time. The income statement is a summary of the revenue and expenses of business for a specific period of time. The income statement is a flow statement and shows how much revenue is received during period of time. 2. The credit grantor can obtain financial statements either from the applicant, from the applicant’s bank or accountant, or from a credit agency. Getting the statements from a professional company instead of directly from the source, could mean that they are correct and they have already been analyzed. 3. If someone were not going to give me their statements, I would feel that there is either something wrong with their statements or they are doing something illegal. If someone were not giving me their numbers, I could get them from their tax records. 4. No the loyalty and effectiveness of a firm’s personnel should not be included in its assets because every company should be loyal and effective. And if they are that more loyal and effective it will show in the profits. 5.
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chapter 16 - Chapter 16 Mike Solomich 1/25/09 1. The...

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