Mary Ann has a passion for cooking and her greatest interest is to establish a catering business. Mary Ann is aware of the rate of failure prone to these new businesses. She is evaluating if she should purchase an existing catering business that is for sale. The present owner understands that the enterprise is vastly lucrative; however, Mary Ann has her uncertainties. She wonders why the owners would be so interested in selling the business if the business has the potential to create profit. Moreover, the value that the owner demands seems to be high to Mary Ann. Mary Ann lacks formal knowledge in accounting. As a result, she asks her friend, Rolanda, who has a little more business knowledge for her recommendation.
In response, Rolanda proposes that Mary Ann may gain more information and knowledge from the services of a non-certified public accountant. This is due to the fact that there are numerous financial analysts who are not required to take the CPA (Certified public accountants) test. In countless minority businesses, individuals depend on these non-certified public accountants for income-tax preparation, payroll …show more content…
Organizations have no choice but to provide reports while applying for loans or selling stock (Hale, Landry, & Wood, 2004). Independent auditors who do not work for the company must ensure that consumer's accounting systems is adopting commonly accepted accounting principles GAAP (Generally Accepted Accounting Principles). After reviewing the auditor’s report, Marry Ann evaluated financial statements (Losano, 1979). The evaluation showed that the recent balance sheet of the business had more liabilities than assets. The main reason that led the owner to get out of business was the following: the business had assets that were not sufficient to pay off all debts that resulted in
In response, Rolanda proposes that Mary Ann may gain more information and knowledge from the services of a non-certified public accountant. This is due to the fact that there are numerous financial analysts who are not required to take the CPA (Certified public accountants) test. In countless minority businesses, individuals depend on these non-certified public accountants for income-tax preparation, payroll …show more content…
Organizations have no choice but to provide reports while applying for loans or selling stock (Hale, Landry, & Wood, 2004). Independent auditors who do not work for the company must ensure that consumer's accounting systems is adopting commonly accepted accounting principles GAAP (Generally Accepted Accounting Principles). After reviewing the auditor’s report, Marry Ann evaluated financial statements (Losano, 1979). The evaluation showed that the recent balance sheet of the business had more liabilities than assets. The main reason that led the owner to get out of business was the following: the business had assets that were not sufficient to pay off all debts that resulted in