During a conversation at your summer holiday employment, one of the managers (who is not an accountant)

asks you the following questions:

1 ‘My auditor keeps wanting to talk to me about what the balance sheet says about the company’s finances and how I’ve managed them. But I always look to the future – why should I care about the balance sheet when it’s just a ‘‘snapshot’’ of history?’

2 ‘Last year, I had a really good idea about the balance sheet. You know, I consider our restaurant managers to be the most important asset the company has. I was going to have the managers added to the balance sheet as assets, so it would show all our assets. But the accountants and auditors didn’t seem interested in my idea. Why not?’
Required:
Using the knowledge gained from this chapter, suggest possible responses.