In His Presentation to His Banker When He Applies for a Business

question 128

Multiple Choice

In his presentation to his banker when he applies for a business loan to purchase additional equipment, Alan should emphasise:

• A)how much profit the new equipment will generate.
• B)how he will be able to repay the principal of the loan.
• C)how energy-efficient the new equipment is.
• D)how much income he will generate for the bank.

---

Definitions:

Adjusting Entries

Entries compiled at the termination of an accounting interval aiming to apportion income and expenditure to their rightful temporal occurrence.

Trial Balance

A financial spreadsheet where the totals of all ledger balances are gathered into columns for debits and credits, ensuring these totals match.

T Accounts

A visual representation of accounts used in double-entry bookkeeping, showing debits on the left and credits on the right.

Ending Figure

The ending figure represents the final amount or value of an account or calculation at the conclusion of a specified period.