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Accounts Assignemnt
Tom Smith has a small retail shop which sells consumable goods. In need of cash, the business applies for a loan from a prominent local bank MCB. The bank requires borrowers to submit financial statements. With little knowledge of accounting, Tom, the proprietor, does not know how to proceed.
Requirements
1. Define three possible users of the financial information that will be produced by this company.
2. Which organization is the privately funded body of accountants that defines pronouncements that guide how the financial statements will be prepared?
3. Indicate why a lender would require this information.
4. What type of organization is Tom Smith and why?
5. If Tom wanted to attract outside investors, which form of business would best enable that option?
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