Tuesday, 27 May 2014
Explain fully, citing specific items such as the accounting equation and amounts from the balance sheets
The proprietors of two businesses, L.L. Sams Company and Melinda Garcia
Career Services, have sought business loans from you. To decide whether
to make the loans, you have requested their balance sheets. Solely on
the basis of these balance sheets, to which entity would you be more
comfortable lending money? Explain fully, citing specific items such as
the accounting equation and amounts from the balance sheets. In addition
to balance sheet data, what other information would you require?
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