Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal Bank. The bank requested financial statements from Rhino Enterprises as a basis for granting the loan. Colleen has told her accountant to provide the bank with a balance sheet. Colleen has decided to omit the other financial statements because there was a net loss during the past year. In groups of three or four, discuss the following questions: 1. Is Colleen behaving in a professional manner by omitting some of the financial statements?

Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal Bank. The bank requested financial statements from Rhino Enterprises as a basis for granting the loan. Colleen has told her accountant to provide the bank with a balance sheet. Colleen has decided to omit the other financial statements because there was a net loss during the past year. In groups of three or four, discuss the following questions: 1. Is Colleen behaving in a professional manner by omitting some of the financial statements?

Name: Colleen Fernandez, president of Rhino Enterprises, applied for a $175
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from FirstFederal Bank. The bank requested financial statements from Rhino Enterprises as a basis forgranting the loan. Colleen has told her accountant to provide the ban

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In…

A: When the total taxable income is after computing the AGI and deducting all the deductions allowed to…

Q: Rica, the president of XYZ Corporation was authorized by the Board of Directors of XYZ Corporation…

A: A loan means a contract in which one party lends money to other for a certain time period that is…

Q: Bev Wynn, vice president of operations for Dillon County Bank, has instructed the bank’s computer…

A: Interest on loan: Interest on loan is the amount charged on the loan principal for the privilege of…

Q: ter a wedding, ten people were hospitalized possibly as a result of food poisoning from products…

A: Contingent liabilities are liabilities that are probable to occur on a future date. They are not…

Q: Precilla, vice-president of operations for Sturgis National Bank, has instructed the bank's computer…

A: No ,Precilla is not behaving in professional manner. It has an impact on stakeholder interests.…

Q: An auditor signed the financial statements of a small business that was up for sale. In them, he…

A: a), it is not relevant because the auditor has not conducted the audit with due diligence. He has…

Q: Advise Clara Hammond and Never-Do-Well. w

Q: bank manager’s responsibility was to making loans. Auditors discovered that several loans he made…

A: 1. We can search for the following records to find information related to manager's assets: His all…

Q: Jesse has a good job and pays off his one credit card every month. He was surprised that when he…

A: A credit review, also known as account monitoring or account review inquiry, is a periodic…

Q: statements give the teacher an award not disclose or journalize the potential liability record an…

A: |• A liability whose occurrence depends upon the happening or non happening of future uncertain…

Q: Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care…

A: The objective of the question is to calculate Katherine Green's Adjusted Gross Income (AGI). AGI is…

Q: Clara Hammond persuaded her daughter, Never-Do-Well to give up her secretarial work and read BSc…

A: As within the initial case, there was no legal agreement between Clara Hammond and her female…

Q: Molly is a full-time engineer for Y-Corporation. On the weekends, Molly enters fishing competitions…

A: The question is related to taxation.The Internal Revenue Service defines a hobby as any activity…

Q: Clara Hammond persuaded her daughter, Never-Do-Well to give up her secretarial work and read BSc…

A: The area of law for the above case would contract law as there is some contractual agreement or…

Q: Which of the following is Katie's best option?

A: Case settlement is the situation when one party files court case against another party for the…

Q: 1. Adrian is a bank manager. A customer Neo has come into the bank. Neo has a mortgage loan with the…

Q: Bob owns a boat supply store in Grosse Point. In March Bob borrows $1million from Mafia Bank to…

A: The interest which lowers the risk of a lender is known as the securing interest. It permits the…

Q: Dominique Fouque owns and operates Dominique’s Doll House. She has a small shop in which she sells…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: Passive activities. Jhudora owns one rental property. She actively participates in managing the…

A: A "suspended loss" is a loss resulting from an action that the Internal Revenue Service (IRS) has…

Q: Indicate which principles are violated: No financial statements were prepared by Michael Go for his…

A: Accounting principles must be followed while preparing the financial statements of a firm in order…

Q: Mid-Pacific

A: According to :The Uniform commercial Code (UCC) has the following requirements for instrument to be…

Q: What is Schedule D net income

A: Capital gain or loss can be defined as the gain or loss incurred by the sale of capital asset, that…

Q: During the year to 31 December 2019, a customer started legal proceedings against TCI Food company,…

A: IAS 37 deals with provisions and contingent liabilities. IAS 37 has laid out some provision…

Q: Raj Turner is a loan officer in a small community bank. One of his more affluent customers has…

A: First we need to find out the answers to the following questions so that we may understand better…

Q: identify whether Ursula's comments are accurate or not accurate A. (1) Accurate; (2) Not accurate B.…

A: B . (1) Not Accurate; (2) Accurate Ursula has no personal assets or income separate from her…

Q: A new client has just contacted you to prepare their business tax return for the current year. He…

A: Business tax return is the return which have to be filled by the enterprise in which it is computed…

Q: Better Days Ahead, a charitable organization, has a standing agreement with First National Bank. The…

A: I consider it depends on the bank’s concentrating for the overdraft clause. If the absorbed was to…

Q: Katrina, a risk manager for State Farm Insurance, filed a petition in bankruptcy under Chapter 7,…

A: It is most common form of bankruptcy. In this form of bankruptcy court helps creditors to get their…

Q: Beverly Moore is struggling to pass her introductory accounting course. Beverly is intelligent but…

Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

Topic Video

Question

Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First
Federal Bank. The bank requested financial statements from Rhino Enterprises as a basis for
granting the loan. Colleen has told her accountant to provide the bank with a balance sheet.
Colleen has decided to omit the other financial statements because there was a net loss during
the past year.
In groups of three or four, discuss the following questions:
1. Is Colleen behaving in a professional manner by omitting some of the financial statements?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Samantha, who is single and has MAGI of $41,400, was recently employed by an accounting firm. During the year, she spends $1,200 for a CPA exam review course and begins working on a law degree in night school. Her law school expenses were $4,140 for tuition and $720 for books (which are not a requirement for enrollment in the course). Click here to access Concept Summary 9.2. If an amount is zero, enter "0". Assuming no reimbursement, how much of these expenses can Samantha deduct?
Jones is suspected of carrying out a fraud while working for his employer. Jones has worked for the employer for several years. The fraud is suspected to have begun in 2013 and possibly continued in 2014. As part of the investigation, the following financial information has been collected concerning Jones.In 2012, Jones was able to document he had $800 cash on hand and $1725 in a checking account. He also had a student loan on which he owed $8000.In 2013, Jones paid off his student loan. He also purchased a new car for $22,000. During the same year he purchased a condominium priced at $128,000. He placed $38,000 down and financed the remainder with a non-interest mortgage of $90,000. In addition, Jones had documented expenses of $12,000 for 2013 and according to his W-2 earned $55,000 in net wages. He has a zero balance in his bank account at year-end, no cash on hand, and made no known mortgage payments.During 2014 Jones had no cash on hand but $5,000 in his banking account. He…
It’s been two years since Ramone finished his undergraduate studies in Business Administration with an emphasis in Accounting. He has been trying to seek employment to help the family, as both his parents spent most of their life’s savings to pay his university tuition. Three weeks later, Ramone was called for an interview with the Ministry of National Integrity (MNI). He had forgotten that he had applied for the position of Junior Auditor within the Ministry. The panel consisted of several top-level managers, including the Chief Audit Executive (CAE) and the Senior Director of the Human Resource & Administrative Division (HRMA). The Senior Director of HRM&A stated that they were impressed with his resume, however, before they can decide on giving him the job, he will have to answer some questions relating to the Audit Report. The following were asked of him by the CAE. Required: a. Explain the term ‘audit report’, and state the four (4) types of audit reports that can be…
The accounting firm involved in this case wants to know if their independence will be questioned by the BOA. You have been asked to submit an analysis and conclusion. 2. Franklin Rosario is an audit manager in the Salvador & Santos accounting firm. He has just been assigned to the audit of the Starex Money Market Fund. Franklin has maintained a money market account with SMMF since it opened in 2008. All his savings, amounting to 75 percent of his total assets, are in this account, which pays the highest interest available in money market funds. However, his account constitutes only .00001 percent of the fund's assets.
One of the clients of MMM Chartered Accountants operates a restaurant. From January of the current year, the business has consistently paid its suppliers late, well in excess of the suppliers' normal credit terms. This has resulted in some suppliers requesting cash on delivery from the business. The auditor has reviewed the correspondence between the business and its bank and finds that the business has been experiencing cash flow problems for two years. Explain whether (and, if so, how) the information provided impacts on the auditor's assessment of preliminary materiality
I have completed the problem at below but am not too satisfied with my rationales. I'd like to have some guidence here in order to get the correct answers. Would you please help. Thanks much! David K. Gibbs, age 37 and his wife Barbara, age 33, have two children Chris and Ellen, ages 4 and 12. David is employed as an engineer for an oil company, and his wife recently completed a degree in accounting and will begin working for a public accounting firm next year. David has compiled the following information for his 2018 tax return. For the current year, David received a salary of $170,000. His employer withheld Federal income taxes of $9,000 and the appropriate amount of FICA taxes. At the annual Christmas party, he received a card indicating that he would receive a bonus of $3,000 for his good work during the year. The bonus check was placed in his mailbox at work on December 30. Since David was out of town for the holidays, he did not pick up the bonus check until…
Which of the following individuals is least likely to be audited OA. Lola has AGI of $35,000 from wages and uses the standard deduction B. Jerry is a school teacher with 2 children earning $55,000 a year. He also receives $200 in interest income on a bank statement OC. Marvella has a $145,000 net loss from her unincorporated business (a horse farm). She also received $950,000 salary as a CEO of a corporation D. Melvin is retired and receives only Social Security benefits