2007-06-05 04:08:21 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
A lay person can prepare a statement of accounts worth millions without knowing the principles of accounting. Some basic knowledge of assets and liabilities are needed. Most lenders will have a borrower complete a credit application when needing a loan. The credit application is a simple balance sheet. To verify income, the lender may require a pay stub or tax return and that is their way of reconciling income.
2007-06-05 05:01:01 · answer #1 · answered by blue 3 · 0⤊ 0⤋
Yes, if they are his own, but I would question the accuracy of such statements.
That's why outside users would require a CPA report on those financials. The report would either be a compilation report, a review report, or an audit report.
2007-06-05 19:09:46 · answer #2 · answered by Gerald 2 · 0⤊ 0⤋
Probably not, if he doesn't know accounting basics.
2007-06-05 11:14:39 · answer #3 · answered by Judy 7 · 0⤊ 0⤋