Case study of terry maness


Terry Maness, Inc., publishes a travel magazine. In need of cash, the business asks Metro Bank for a loan. The bank requires borrowers to submit financial statements. With little knowledge of accounting, Terry Maness, the sole shareholder, does not  know how to proceed.

Requirements

Explain how to prepare the balance sheet and the income statement.

Which organization is the self-regulating body of accountants that defines pronouncements that guide how the financials will be prepared?

Indicate why a lender would require this information.

What type of organization is Terry Maness?

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