Your uncle, Mr. Mensah is a sole proprietor dealing in building materials in Accra. His friend, Kofi Manu has convinced him to convert his sole proprietorship business into a limited liability company. Just last week your Uncle wanted a loan facility from a bank and the bank asked him to submit three years financial statements in addition to other documents. Having learnt the definition of financial accounting and financial statements, your Uncle wants you to help him understand certain issues in accounting. Required: a) Explain four disadvantages of converting the business to a private limited liability company. b) Referring to the definition of financial accounting explain the process that financial transactions have to go through in the preparation of financial statements. c) Apart from the bank that is asking your Uncle to submit financial statements, identify four other users of financial statements and explain their information need

Your uncle, Mr. Mensah is a sole proprietor dealing in building materials in Accra. His friend, Kofi Manu has convinced him to convert his sole proprietorship business into a limited liability company. Just last week your Uncle wanted a loan facility from a bank and the bank asked him to submit three years financial statements in addition to other documents. Having learnt the definition of financial accounting and financial statements, your Uncle wants you to help him understand certain issues in accounting. Required: a) Explain four disadvantages of converting the business to a private limited liability company. b) Referring to the definition of financial accounting explain the process that financial transactions have to go through in the preparation of financial statements. c) Apart from the bank that is asking your Uncle to submit financial statements, identify four other users of financial statements and explain their information need

Name: Your uncle, Mr. Mensah is a sole proprietor dealing in building materi
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Description: Your uncle, Mr. Mensah is a sole proprietor dealing in building materials in Accra. His friend, Kofi Manu has convinced him to convert his sole proprietorship business into a limited liability company. Just last week your Uncle wanted a loan facility

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 12E

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2. Your uncle Mr. Mensah is a sole proprietor dealing in building materials in Accra. His friend, Kofi Manu has convinced him to convert his sole proprietorship business into a limited liability company. Just last week your Uncle wanted a loan facility from a bank and the bank asked him to submit three years of financial statements in addition to other documents. Having learned the definition of financial accounting and financial statements, your Uncle wants you to help him understand certain issues in accounting. Required: a) Explain four disadvantages of converting the business to a private limited liability company. b) Referring to the definition of financial accounting explain the process that financial transactions have to go through in the preparation of financial statements. c) Apart from the bank that is asking your Uncle to submit financial statements, identify four other users of financial statements and explain their information needs.
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