Chapter 1, Problem 1.1CP

a)

To determine

Ethical Case Study:

Case Summary:

CF president of R Enterprises applied for a bank loan from FF Bank for $175,000. FF Bank requests for the financial statement of R Enterprises, as a basis to provide the loan. CD instructs the accountant of R Enterprises to provide the balance sheet alone due the net loss in the previous year.

To Explain: If CD is behaving in a professional manner by omitting some of financial statements.

b)

To determine

To Provide: The list of items owners would or would not like to provide.

c)

To determine

To Explain: The information required by the bank before extending loan.

d)

To determine

To Explain: The common interest shared by the bank and business owners.