To secure a loan, the owner must provide a well-revised, expansion-specific business plan

outlining objectives, strategies, and market research that align with current market trends and
core competencies. This ensures that the business is prepared for a significant transition for the
expansion from a computer repair shop to a full-blown computer store, as suggested by Peek
(2020). Legal compliance, including a Certificate of Registration, is crucial to establish the
business's legitimacy. Comprehensive financial statements, such as recent bank statements,
Income Tax Returns (ITR), and collateral documents, are required to demonstrate financial
stability (First Circle, 2023). These documents should also detail significant financial events, like
investments or debt commitments. Lastly, a financial forecast for the coming years, including
revenue estimates, costs, and cash flow projections, is vital to prove the business's capacity to
repay the loan while maintaining a healthy profit margin. Clear identification of collateral,
whether business or personal assets, to secure the loan is equally essential. Presenting this
information to the loan officer will assure them of the owner's preparedness for expansion, legal
compliance, and financial stability, increasing the likelihood of loan approval for the business.

The instruction of the assistant can have detrimental effects on the accounting records
because by falsifying the number of sales recorded, erroneous results could occur to the
financial statements of the business. More specifically, there might be bias in the revenue and
sales numbers. Over time, they could cause issues for the company, such as bad investment and
commercial decisions, fines from the government, and harm to its brand (Russo, 2022). The
principle of revenue recognition, which mandates that income be recognized when it is
produced and not when payment is received (Tuovila, 2023), is the apparent accounting
standard that this behavior breaches. Delaying the inclusion of sales goes against this concept
and may give a false impression of the company's financial situation. It is ethically
questionable, given that the assistant manager's orders could result in fraud, among the many
harmful impacts it may have on the company. It compromises the accuracy of financial records,
endangers the company's reputation, and threatens the financial stability of the business by
falsifying sales numbers. Preserving reliable financial data is essential for informed
decision-making and maintaining trust with stakeholders and customers. I would reject the
assistant manager's suggestion, explain the ethical and legal consequences, and report it to top
management or the business manager to ensure proper accounting procedures are followed.
 When a business owner is about to present the growth or the success their business had
to potential investors, how will the business owner convince them? In this narrative, financial
statements emerge as vital storytellers. Beyond mere profit and loss figures, these documents
are the treasure maps that reveal a vivid image of a company's financial state at a precise
moment. They disclose the company's operations, its profitability, its cash flows, and its overall
well-being (Maverick, 2022). Financial statements aren't just tools to dazzle investors; they are
like treasure maps, guiding business owners in decision-making and ensuring their choices are
rooted in a profound understanding of their company's financial performance and activities. In
this scenario, financial statements serve as a compass, enabling business owners to navigate the
high seas and steer toward success. In the business narrative, financial statements are the
unsung heroes, guiding business owners through the uncertainties of commerce. The Balance
Sheet reveals the company's financial state at a moment because it shows the company's assets,
liabilities, and shareholders' equity, which can assist business owners in assessing the financial
health of their organization. Similarly, the Income Statement narrates a company’s profitability
by showcasing the company's revenues and expenses over a set period (SEC.gov, 2007). A
company's ability to manage cash flows and assess if it has sufficient cash or liquidity to meet
its costs makes the Cash Flow Statement an invaluable tool for navigating financial storms. It
can help with planning by allowing a business to estimate future cash flow (Murphy, 2023), and
the Statement of Shareholders' Equity chronicles the journey of retained earnings. It may be
used to assess how well a business owner runs their organization (Fuscaldo, 2023); for example,
if the shareholder’s equity has decreased from one accounting period to the following shows
that the company's owner needs to be properly managing it. A manager's knowledge of
financial statements is like a ship's compass in the vast voyage of business. Without it,
managers and owners alike cannot see essential warning signals of a financial crisis and are
forced to make rash judgments. For example, they can miss deteriorating profitability or
excessive debt, which would guide the company into choppy waters. Furthermore, if they do
not understand the consequences of critical financial statistics, they could choose poorly
regarding investing, hiring, or cost-cutting. Financial statements literacy is the North Star that
assures a safe journey for operating businesses, while its absence increases the risk of missed
opportunities and catastrophic company shipwrecks. For a business to meet success, every
manager should become proficient at reading financial statements.
 References

Business Growth. (2023). The 4 most common business loan requirements in the Philippines.
The 4 Most Common Business Loan Requirements in the Philippines.
https://www.firstcircle.ph/blog/business-loan-requirements-philippines#:~:text=These%
20are%3A%20the%20legality%20of,loan%2C%20should%20it%20be%20approved.

Fuscaldo, D. (2023, February 21). What is a statement of shareholder equity?. business.com.

Investor publications. SEC Emblem. (2007, February 5).

Maverick, J. B. (2022, May 24). Why do shareholders need financial statements?.

Murphy, C. B. (2023, March 9). Cash flow statement: What it is and examples. Investopedia.
https://www.investopedia.com/investing/what-is-a-cash-flow-statement/#:~:text=A%20c
ash%20flow%20statement%20is,which%20helps%20with%20budgeting%20matters.

Peek, S. (2020, February 18). Updating your business plan: A guide for growing businesses.
https://www.uschamber.com/co/.
https://www.uschamber.com/co/start/startup/updating-your-business-plan#:~:text=Durin
g%20your%20company’s%20growth%20mode,or%20new%20products%20or%20servi
ces.

Russo, K. (2022, March 21). What are the risks of Inaccurate Financial Reporting?. Oracle
NetSuite.
https://www.netsuite.com/portal/resource/articles/accounting/inaccurate-financial-reporti
ng.shtml#:~:text=Inaccurate%20reporting%20can%20have%20painful,the%20problems
%20they%20can%20cause.

Tuovila, A. (2023, September 25). Revenue recognition: What it means in accounting and the
5 steps. Investopedia. https://www.investopedia.com/terms/r/revenuerecognition.asp
RUBRIC FOR ASSESSMENT:
Individual reflection paper
CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING
(89-100) (80-88) (70-79) (Below 70)
Content - The student applied The student applied The student applied The student
Application of the relevant most of the relevant some of the relevant failed to apply
theories FDNACCT topics FDNACCT topics FDNACCT topics the relevant
(50%) appropriately. appropriately. appropriately. FDNACCT
topics
appropriately.
Similarity index The student’s The student’s Turnitin The student’s Turnitin The student’s
(20%) Turnitin similarity similarity index similarity index Turnitin
index showed a showed a match of showed a match of similarity index
match of 20% and 21% to 25%. 26% to 30%. showed a match
less. of 31% and
above.
Ethical The student fully The student generally The student somehow The student
considerations applied ethical applied ethical applied ethical failed to apply
(10%) considerations in the considerations in the considerations in the ethical
reflection paper. reflection paper. reflection paper. considerations in
the reflection
paper.
Format and use The student The student followed The student followed The student did
of English followed required required format but required format but not follow
language format and paper is paper contains minor paper contains major format, uses a
(10%) free of any grammatical and violations of the mixture of
grammatical and spelling errors. English language. Filipino and
spelling error. English language
in the paper, and
uses the English
language
inappropriately.
Timeliness The student The student submitted The student submitted The student
(10%) submitted output on output a day after the output three (3) days submitted output
or before the deadline. after the deadline. a week or more
deadline. after deadline.
TOTAL