Asked by Nikita Verma on Jun 28, 2024
Verified
You have just accepted your first job out of college, which requires you to evaluate loan requests at Eastwood National Bank. The first loan request you receive is from Richard Enterprises, a small proprietorship. Richard Tracy, the owner, is requesting $105,000 and brings you the following trial balance
(or statement of accounts) for his first year of operations ended December 31.What three accounts do you think should be relabeled for greater clarity? 
Trial Balance
A bookkeeping worksheet that lists the balances of all ledgers in two columns, typically debit and credit, to ensure that the total debits equal the total credits.
Relabeled
This term, in the context provided, is not clearly defined. Without more specific usage, "Relabeled" is typically understood as changing the label or designation of something, but this doesn't have a direct business or finance definition.
- Examine the imperative of adjusting selected accounts for the sake of financial reporting accuracy.
Verified Answer
SN
Shykh NomanJun 28, 2024
Final Answer :
The following items should be relabeled for greater clarity:Billings Due from Others-Accounts ReceivableAmounts Owed to Others-Accounts PayableInvestment in Business-Richard Tracy, Capital
Learning Objectives
- Examine the imperative of adjusting selected accounts for the sake of financial reporting accuracy.