If you plan to operate a business what is it and why? 1st Follow-up question: What is your favorite account in the financial statement? 2nd Follow-up question: What is your favorite accounting standards? 3rd Follow-up question: Let's say you had your dream business to be operated, a coffee shop perhaps. And you wanted a wall at your coffee shop be painted artistically. Hence, you posted an advertisement online that you wished your wall building be painted artistically. Thus, few days after an artist whom you do not know accepted your job offer online and painted the wall of your building. After finishing the job, you paid him Php 500.00 as the painter went off. How will you recognize this event on your books? 4th Follow-up question: A few days after, an appraiser, whom is also your friend, went to visit your coffee shop and noticed that the painting on your wall was painted by a very famous artist, whom had his signature on the painting itself. After a brief examination your friend told you that the painting's market value is now at Php 2M of which you previously paid for about Php 500.00 only. How will you recognize this event on you books? What would possibly be the journal entries? And how will this journal entry affect your financial statements and books of accounts? 5th Follow-up question: Your coffee shop became popular because of the said painting on your business building's wall. The painting has become the reason why people came to visit your coffee shop hence the main reason why your sales boost. How will you recognize this event on your books? Explain your answer. Should you think you have to recognize the painting as other income? 6th Follow-up question: As your business grows, you plan to look for new investors and plan to process a loan with a bank. How will you present your business' financial status to the investors and to the banks? 7th Follow-up question: Do you think you think you can vouch that your business' financial status is reasonably accepted as per standards? Does it faithfully represent the wealth of your business? 8th Follow-up question: Do you think your answers are correct? How sure are you? From scale 1 to 10 as 10 being the highest how sure are you with your answers?
