You are a Financial Advisor. You have met with your client whose business have "excess cash" in her company. You explained to your client that having the excess cash in the businesss savings account is not financially rewarding as it is earning a very small return (small amount of cash) from the bank.

You suggested to your client that it would be best to invest the excess cash by buying stocks in a company. However, your client does not believe that the financial information of the company that your business would like to invest in is potentially trustworthy.

What are some points that you believe that you can make to convince your client about the reasonableness or trustworthiness of the financial information of the company so that her business would invest in it?

Please provide specifics and any examples that would validate your discussion/argument. Your discussion should take into consideration and/or use the information that you read in Chapter(Financial accounting)

• Understand the financial reporting environment.
• 2.Identify the major policy-setting bodies and their role in the standard-setting process.
• 3.Explain the meaning of generally accepted accounting principles (GAAP) and the role of the Codification for GAAP.
• 4.Describe major challenges in the financial reporting environment.