Question
Diana Thompson has operated her own small business for several years. Her business is doing well, and she wants to expand. In order to do
Diana Thompson has operated her own small business for several years. Her business is doing well, and she wants to expand. In order to do so, she will need a bank loan. In her preliminary meeting with the bank loan officer, she was asked the amount of her owners equity in the business. Diana doesnt know this amount because she has never prepared any financial statements for her business. In order to address this owners equity issue raised by the bank, what evidence should Diana prepare?
Cash plus bank loan balance
Cash minus bank loan balance
Revenues minus expenses
Revenues plus cash minus expenses
Total assets plus liabilities
Total assets minus liabilities
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