Baker Construction is a small corporation owned and managed by Tom Baker. The corporation has 21 employees, few cred-itors, and no investor other than Tom Baker. Thus, like many small businesses, it has no obligation to issue fi nancial state-ments to creditors or investors. Under these circumstances, is there any reason for this corporation to maintain account-ing records?
Baker Construction is a small corporation owned and managed by Tom Baker. The corporation has 21 employees, few cred-itors, and no investor other than Tom Baker. Thus, like many small businesses, it has no obligation to issue fi nancial state-ments to creditors or investors. Under these circumstances, is there any reason for this corporation to maintain account-ing records?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Baker Construction is a small corporation owned and managed
by Tom Baker. The corporation has 21 employees, few cred-
itors, and no investor other than Tom Baker. Thus, like many
small businesses, it has no obligation to issue fi nancial state-
ments to creditors or investors. Under these circumstances,
is there any reason for this corporation to maintain account-
ing records?
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