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recommendations and simplify complicated ideas beneficial for this paper.

As a business owner who wants to apply for a loan and expand his computer service
shop, you must prove your ability to manage and repay the loan, showing yourself as a
responsible borrower. The approval process starts with reviewing the documents showing your
identity, business legitimacy, financial capacity, and profitability (The 4 Most Common Business
Loan Requirements in the Philippines, 2023). Identity requirements include personal details and
records, while documents proving your business legitimacy include papers of your business
registration. Since it is a business loan application, you must present documents that prove your
financial capacity and profitability, such as credit history, audited financial reports or statements,
tax returns, proof of profitability, and other requirements that would convince them you are
financially qualified. Reflecting on its complicated process, it is more than simply seeking
financial support. It shows the owner's dedication to their venture and eagerness to foster
business growth in the Philippine industry.
Recording transactions is a fundamental aspect of business operations, ensuring the
validity of financial activities. Disregarding this practice in favor of the assistant manager's
suggestion compromises transparency and internal controls, leading to unethical conduct and
violating accounting principles like the Matching Principle. Delaying revenue recording equates
to potential revenue manipulation and negligence as a cashier. Furthermore, the assistant
manager's instructions not only affect the accuracy of transaction presentation but also violate the
Revenue Recognition Principle and Materiality Principle due to recording delays. In the
professional field, such instructions are widely considered unethical, particularly in management,
where there is an emphasis on the importance of internal controls. This approach could be seen
as a fraud, affecting reliability, transparency, and credibility, qualities essential across different
fields. As a professional with integrity, I will firmly reject these instructions and propose
achievable alternatives like adding extra counters or hiring additional cashiers to improve
operational efficiency while keeping ethical standards. Real-life situations like this often involve
more than uncontrollable risks but internal manipulation. Sacrificing one's integrity to maintain a
position within a business, particularly in the financial sector, is unacceptable. While it may
seem advantageous to some, allowing fraud to occur undermines one's career and the overall
integrity of the business operation.
 Financial statements are written records that provide an overview of a company's
business activities and financial transactions (Murphy, 2023). They are essential for assessing a
business's financial health, forecasting future developments, and assisting stakeholders in
decision-making. Investors, as one of the primary users, rely on these documents to determine a
company's attractiveness for investment. The complete set of financial statements, excluding the
notes, consists of the Statement of Financial Position (balance sheet), the Statement of Profit and
Loss (income statement), the Statement of Changes in Equity (equity statement), and the
Statement of Cash Flows (cash flow statement). These documents, together, provide a
comprehensive view of a company's financial status. The Balance Sheet shows the company's
working capital by presenting its assets, liabilities, and equity. The Income Statement tracks
revenue, expenses, and the profit or loss for the period. The Equity Statement records changes in
the owner's capital, and the Cash Flow Statement discloses cash inflows and outflows related to
the company's operating, investing, and financing activities. They are often required to comply
with necessary accounting standards. However, there are instances where businesses may not
follow the same accounting standards or prepare financial statements of the same complexity.
While accountants are commonly responsible for these statements, managers must understand
even the basics. A lack of understanding can allow potential manipulation and fraud. For
instance, an accounting employee with corrupt intent could manipulate financial statements for
personal gain if the business manager lacks the knowledge to identify discrepancies. If these
misstatements go continuously unnoticed, it will negatively affect the company's financial health.
Also, without a basic grasp of financial statements, managers may struggle to make reliable
business decisions. Financial statements are not mere presentations; they serve as tools for
forecasting and decision-making. For instance, if the yearly income statements consistently show
a net profit, the manager may mistakenly believe they are on the right track with sales. They
might not recognize that the profit statistics don't progress well, or they are inefficiently
allocating their revenue, such as overspending on advertising. In conclusion, financial statements
are tools for understanding a business's current and future financial position. Just as aligning
one's skills and goals in life leads to success, a business owner or employee equipped with basic
knowledge of financial statements can track progress better and make informed decisions for the
business's long-term success and improvement.
References:

Annie. (2023, August 14). How to comply with IFRS accounting standards. Quaderno.

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‌Freiman, A. (2022, September 8). How Do a Debit and a Credit Fall in Love? The Matching

Principle in Accounting. Patriot Software.

https://www.patriotsoftware.com/blog/accounting/matching-principle-in-accounting/

Murphy, C. B. (2023, March 21). Financial Statements: List of Types and How to Read Them.

Investopedia. https://www.investopedia.com/terms/f/financial-

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The 4 Most Common Business Loan Requirements in the Philippines. (2023, October 24).

Firstcircle.ph. https://www.firstcircle.ph/blog/business-loan-requirements-philippines

‌Tuovila, A. (2023, March 7). Accounting Principles Explained: How They Work, GAAP, IFRS.

Investopedia. https://www.investopedia.com/terms/a/accounting-principles.asp