Morgan's Music Shop Inc. has just finished their first year in business. Morgan has come to you, her competent CPA, to assist in the financial reporting process. She has previously expressed some concern, because she has never created financial statements before and is hoping to better understand the process. The following are some highlights from your discussion with Morgan. "When I started my business, I took a loan out from the bank to purchase the building we operate in and equipment. The bank is requesting my financial statements. In my discussions with the bank, they mentioned that my financial statements must be in accordance with GAAP. Why do they need my financial statements in the first place, and why must they be in accordance with GAAP? Required: Assume the role of Morgan's friend and provide a suitable response to her questions. Maximum number of characters (including HTML tags added by text editor): 32,000 Show Rich-Text Editor (and character count)