Financial Accounting

You are auditing the financial statements of a client for the year ending Decemb

You are auditing the financial statements of a client for the year ending December 31, 20X3. You have compiled a list of possible errors or fraud that could result in the misstate…

You are auditing the financial statements of a client for the year ending Decemb

You are auditing the financial statements of a client for the year ending December 31, 20X3. You have compiled a list of possible errors or fraud that could result in the misstate…

You are auditing the receivables and the company’s bank accounts for XYZ Ltd, a

You are auditing the receivables and the company’s bank accounts for XYZ Ltd, a small manufacturer of high quality furniture.  XYZ makes cabinets to order for local contractors an…

You are beginning the 2015 annual audit of your client L&H.; This is your second

You are beginning the 2015 annual audit of your client L&H.; This is your second year on the audit team L&H; is a software company that develops speech recognition softwar…

You are bidding in an auction for a certified, used tractor. You determine that

You are bidding in an auction for a certified, used tractor. You determine that the economic profit you can make from the tractor is $80,000. You do not care about any risk or unc…

You are building a new movie theater in Atlantic Station, and have two options.

You are building a new movie theater in Atlantic Station, and have two options. The first is to build a large theater for $1.7 million that will generate $350,000 in profit a year…

You are building a yacht. It will be done in 5 years. You have 3 choices regardi

You are building a yacht. It will be done in 5 years. You have 3 choices regarding payment. 1) You can pay for it now and pay $1,200,000; 2) you can pay for it when it is complete…

You are building a yacht. It will be done in 5 years. You have 3 choices regardi

You are building a yacht. It will be done in 5 years. You have 3 choices regarding payment. 1) You can pay for it now and pay $1,200,000; 2) you can pay for it when it is complete…

You are building a yacht. It will be done in 5 years. You have 3 choices regardi

You are building a yacht. It will be done in 5 years. You have 3 choices regarding payment. 1) You can pay for it now and pay $1,200,000; 2) you can pay for it when it is complete…

You are building a yacht. It will be done in 5 years. You have 3 choices regardi

You are building a yacht. It will be done in 5 years. You have 3 choices regarding payment. 1) You can pay for it now and pay $1,200,000; 2) you can pay for it when it is complete…

You are building a yacht. It will be done in 5 years. You have 3 choices regardi

You are building a yacht. It will be done in 5 years. You have 3 choices regarding payment. 1) You can pay for it now and pay $1,200,000; 2) you can pay for it when it is complete…

You are called by Tim Duncan of Spurs Co. on July 16 and asked to prepare a clai

You are called by Tim Duncan of Spurs Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an invent…

You are called by Tim Duncan of Spurs Co. on July 16 and asked to prepare a clai

You are called by Tim Duncan of Spurs Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an invent…

You are called by Tim Duncan of Waterway Co. on July 16 and asked to prepare a c

You are called by Tim Duncan of Waterway Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inv…

You are chief counsel to the chairman of the Joint Committee on Taxation, the bo

You are chief counsel to the chairman of the Joint Committee on Taxation, the body primarily responsible for identifying taxation issues and their consequences as Congress seeks t…

You are conducting the audit of A-One Travel. There are two major concerns you h

You are conducting the audit of A-One Travel. There are two major concerns you have in A-One’s operations: 1. When a customer purchases a travel package via credit card, the accou…

You are conducting the audit of Superior Company as of December 31, 2014. The fo

You are conducting the audit of Superior Company as of December 31, 2014. The following accounts receivable confirmations were sent out by you and returned to you from Superior’s …

You are conducting the audit of Superior Company as of December 31, 2014. The fo

You are conducting the audit of Superior Company as of December 31, 2014. The following accounts receivable confirmations were sent out by you and returned to you from Superior’s …

You are conducting the audit of Superior Company as of December 31, 2014. The fo

You are conducting the audit of Superior Company as of December 31, 2014. The following accounts receivable confirmations were sent out by you and returned to you from Superior’s …

You are conducting the audit of Superior Company as of December 31, 2014. The fo

You are conducting the audit of Superior Company as of December 31, 2014. The following accounts receivable confirmations were sent out by you and returned to you from Superior’s …

You are confronted with the opportunity to participate in a project with the fol

You are confronted with the opportunity to participate in a project with the following known distribution of returns: State Prob Project ROR 1 1/4 20% 2 1/2 15% 3 1/4 -4% A bank w…

You are considering a an investment in a project with a life of eight years, an

You are considering a an investment in a project with a life of eight years, an initial outlay of $120,000, and annual after-tax cash flow of $52,000. The project also requires an…

You are considering a new product launch. The project will cost $1,850,000, have

You are considering a new product launch. The project will cost $1,850,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Sales are proj…

You are considering a new product launch. The project will cost $2,300,000, have

You are considering a new product launch. The project will cost $2,300,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Sales are proj…

You are considering a stock investment in one of two firms (LotsofDebt, Inc. and

You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $34…

You are considering a stock investment in one of two firms (LotsofDebt, Inc. and

You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $32…

You are considering acceptable audit risk at the financial statement level. For

You are considering acceptable audit risk at the financial statement level. For each of the following independent scenarios, based only on the information provided, indicate the e…

You are considering acceptable audit risk at the nancial statement level. For ea

You are considering acceptable audit risk at the nancial statement level. For each of the following independent scenarios, based only on the information provided, indicate the eff…

You are considering acquiring a firm that you believe can generate expected cash

You are considering acquiring a firm that you believe can generate expected cash flows of $14,000 a year forever. However, you recognize that those cash flows are uncertain. a. Su…

You are considering adding a new software title to those published by your highl

You are considering adding a new software title to those published by your highly successful software company. If you add the new product, it will use capacity on your disk duplic…

You are considering an audit engagement with a new, privately held entrepreneuri

You are considering an audit engagement with a new, privately held entrepreneurial company (Moxy, Inc.) headed by Ryan Morris, a charming CEO. The company specializes in chemical …

You are considering an investment in 30-year bonds issued by Moore Corporation.

You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are curren…

You are considering an investment in First Allegiance Corp. The firm has a beta

You are considering an investment in First Allegiance Corp. The firm has a beta of 1.62. Currently, U.S. Treasury bills are yielding 6.75% and the expected return for the S & …

You are considering an investment in Keller Corporation’s stock,which is expecte

You are considering an investment in Keller Corporation’s stock,which is expected to pay a dividend of $2.00 a share at the end of the year (D1 = $2.00) and has a beta of 0.85. Th…

You are considering an investment in a clothes distributer. The company needs $1

You are considering an investment in a clothes distributer. The company needs $106,000 today and expects to repay you $126,00 in a year from now. What is the IRR of this investmen…

You are considering an investment in a clothes distributor. The company needs $1

You are considering an investment in a clothes distributor. The company needs $103,000 today and expects to repay you $130,000 in a year from now. What is the IRR of this investme…

You are considering an investment in a mutual fund with a 3% front-end load and

You are considering an investment in a mutual fund with a 3% front-end load and an expense ratio of 1.2%. You can invest instead in a bank CD paying 5% interest. If you plan to in…

You are considering buying a house for $200,000. You have $40,000 in your bank a

You are considering buying a house for $200,000. You have $40,000 in your bank account which pays 1% APR compounded monthly. If you contribute 10% of the price of the house as a d…

You are considering buying a house for $200,000. You have $40,000 in your bank a

You are considering buying a house for $200,000. You have $40,000 in your bank account which pays 1% APR compounded monthly. If you contribute 10% of the price of the house as a d…

You are considering buying an oil field. If you buy the field, you can extract t

You are considering buying an oil field. If you buy the field, you can extract the oil in one year. There are 100 barrels of oil that can be extracted from the field; the cost of …

You are considering different investment strategies to save for your retirement.

You are considering different investment strategies to save for your retirement. Option 1: You invest $25/ month at a rate of 3.25% APR compounded monthly for 30 years. Option 2: …

You are considering expanding your product line that currently consists of skate

You are considering expanding your product line that currently consists of skateboards to include gas-powered skateboards, and you feel you can sell 10,000 of these per year for 1…

You are considering expanding your product line that currently consists of skate

You are considering expanding your product line that currently consists of skateboards to include gas-powered skateboards, and you feel you can sell 10,000 of these per year for 1…

You are considering expanding your product line that currently consists of skate

You are considering expanding your product line that currently consists of skateboards to include gas-powered skateboards, and you feel you can sell 9.000 of these per year for 10…

You are considering introducing a new Tex-MexThai fusion restaurant. The initial

You are considering introducing a new Tex-MexThai fusion restaurant. The initial outlay on this new restaurant is $6.9 million and the present value of the free cash flows (exclud…

You are considering investing in Mike\'s Cable, an enterprise that will pay a di

You are considering investing in Mike's Cable, an enterprise that will pay a dividend of $3, which will increase by 14 percent every year over the following three years and then g…

You are considering investing in a company that cultivates abalone for sale to l

You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per abalone = $35.80 Variable costs pe…

You are considering investing in a company that cultivates abalone for sale to l

You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per abalone = $35.50 Variable costs pe…

You are considering investing in an apartment complex. The apartment complex has

You are considering investing in an apartment complex. The apartment complex has five units and costs $2,000,000. Your bank requires you to invest $400,000 (10%) as a downpayment.…

You are considering purchasing 100 shares of stock in Big Money Company. You exp

You are considering purchasing 100 shares of stock in Big Money Company. You expect the stock to pay annual dividends of $970 at the end of each year, and to be worth $85,000 at t…