"You are a partner in Acme Accounting PSC and as such are considering how torespond to a letter written to you by Bob a new client. In his letter, he stated that he isconcerned that the balance sheet required by his bank would showcase his debts and make him appear to be a bad candidate for financing. He really wants to get a loan from this bank and is asking you to explain what the point of showing a companys liabilities on the balance sheet is, and if there is any way that you can exclude liabilities from his balance sheet. Your Partners have asked you to respond via letter."

I need some FASB rules or laws as proof that what he wants to do is illegal. These are very important for the letter.