Picasso Graphics is a graphics arts design consulting firm Pablo Taylor, its treasurer and vice president of finance, has prepared a classified balance sheet as of July 31, 2014, the end of its fiscal year This balance sheet will be submitted with Picasso Graphics ' loan application to Paris Trust ...

It is unacceptable to prepare financial statements in such a way that users of the statements wou ...

Picasso Graphics is a graphics arts design consulting firm. Pablo Taylor, its treasurer and vice president of

Question:

Picasso Graphics is a graphics arts design consulting firm. Pablo Taylor, its treasurer and vice president of finance, has prepared a classified as of July 31, 2014, the end of its fiscal year. This will be submitted with Picasso Graphics' loan application to Paris Trust & Savings Bank.
In the Current Assets section of the Pablo reported a $56,000 receivable from Becky Holt, the president of Picasso Graphics, as a trade account receivable. Becky borrowed the money from Picasso Graphics in January 2012 for a down payment on a new home. She has orally assured Pablo that she will pay off the account receivable within the next year. Pablo reported the $56,000 in the same manner on the preceding year's whether it is acceptable for Pablo to prepare the July 31, 2014, in the manner indicated above.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...