Essay Available:
Pages:
1 pages/≈275 words
Sources:
1
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 4.68
Topic:
AF-U3D- financial position
Essay Instructions:
In a company’s annual report to stockholders, companies must report information about all liabilities, including potential liabilities. There are many situations as a business owner in which you will be asked to provide personal financial information about your assets, liabilities, revenue and expenses, sometimes it may be difficult to disclose information that does not make the business look as good as you may want.
If you signed a guarantee for a bank loan that a friend took out for $20,000 and if your friend doesn’t pay, you will have to pay. Your friend has made all payments so far and it appears that he will be able to pay in the future.
In 200 words answer: How would you address the situation in reporting your financial position?
Essay Sample Content Preview:
Transparent Reporting of Contingent Liabilities
Your Name
Department of ABC, University of Wisconsin – Whitewater
ABC 101: Course Name
Professor (or Dr.) Firstname Lastname
Date
Transparent Reporting of Contingent Liabilities
In the reporting of my financial position, I would do so according to the principles of transparency, accuracy, and completeness. Though it could be tempting to leave out or understate the potential liabilities to make the financial picture more attractive, such a way would be unethical and could eventually cause the trust of the stakeholders, including the stockholders, creditors, and the regulating authorities, to be undermined.
I would note in the notes to the financial statements that I signed a $20,000 personal guarantee for my friend's bank loan as a contingent lia...
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