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You Have Been Approached to Invest in a Real Estate

Question 60

Essay

You have been approached to invest in a real estate venture.A small group is going to buy a piece of land and construct single-family homes on it and then sell them.The group has done similar deals in the past, but one of the participants has left the group and they are now looking for new investors.
Required:
Explain how accounting information would help you decide whether or not to invest in the proposed venture.What non-accounting information would you also want?

Correct Answer:

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There should be accounting information f...

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