a. Compare the need for financial information of a bank loan officer, an investor in common stock

a. Compare the need for financial information of a bank loan officer, an investor in common stock, and the financial analyst of an insurance company investing in long-term corporate debt.

b. It is sometimes stated that the asset side of a balance sheet should include the rights in property, both tangible and intangible, of a business enterprise. Accepting this statement, discuss whether the following items should be included among the assets:

a. Investment in government bonds.

b. Investment in corporate bonds.

c. Prepaid expenses.

d. Costs of drilling for oil (assuming oil was found).

e. Advertising costs connected with a new product (not yet offered for sale).

f. Costs of organizing a new corporation.

g. Costs connected with issuing bonds.

h. Costs of installing a piece of equipment.

i. Costs of drilling for oil (assuming oil was not found).

 

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