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© Copyright 2002-2003. All rights reserved.
Page 7
How To Investigate Any Business Opportunity
1. Obtain a schedule of machinery and equipment owned and leased.
2. Determine the condition and age of the machinery and equipment and the frequency of maintenance.
3. Identify the equipment and machinery that is state-of-the-art.
4. Identify the machinery and equipment that is obsolete.
5. Should an appraisal be obtained?
6. Will immediate repairs be required and at what cost?
Accounts Payable
1. Obtain a schedule of accounts payable and determine if there is concentration among a few accounts.
2. Determine the age of the amounts due.
3. Identify all amounts in dispute and determine the reason.
4. Review transactions to determine undisclosed and contingent liabilities.
Accrued Liabilities
1. Obtain a schedule of accrued liabilities.
2. Determine the accounting treatment of:
-unpaid wages at the end of the period 
-accrued vacation pay
-accrued sick leave
-payroll taxes due and payable 
-accrued income taxes
-other accruals
3. Search for unrecorded accrued liabilities 
Notes Payable and Mortgages Payable
1. Obtain a schedule of notes payable and mortgages payable.
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