Question

In: Accounting

You are starting a wine company in Kamloops. You need financing from a bank to make...

You are starting a wine company in Kamloops. You need financing from a bank to make the company possible. You are sitting with the loan officer at ABC Bank, Ms. Money Bags. Money asks you a question. “How will the bank know the new company will be a success? That is, what internal financial reporting (managerial accounting) documents / procedures / techniques / policies will your company implement to estimate and monitor your success?”

How can you make the bank feel better that they will be repaid?

Required:

Respond to Money Bags question. Reflect on all the things we covered in this course. A strong answer will:

  1. Identify what managerial accounting document / procedure / technique / policy you would use in the business, and
  2. How this document / procedure / technique / policy will help manage your business
  3. I’m looking for 5 strong points

(Hint: I’m not looking for paragraph answers. A couple sentences for each document / procedure / technique / policy you would use in the business is more than enough. Be concise with your answers. I’m looking for you to answer “what” you would use and “why” or “how” it would help monitor your small business.)

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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