Questions from Auditing and Assurance

Q: Find an example of data analytics in tax, one that is

Find an example of data analytics in tax, one that is not discussed in the text.

Q: On January 1, the Old Town Heart Association received a $

On January 1, the Old Town Heart Association received a $1,000,000 endowment from the Chamber family. Under terms of the gift, the Association must permanently restrict the endowment—but may spend up...

Q: Mead Motors purchases an automobile for its new car inventory from Generous

Mead Motors purchases an automobile for its new car inventory from Generous Motors, which finances this transaction through its financial subsidiary, Generous Motors Credit Company (GMCC). Mead pays...

Q: Narda Corporation agreed to sell all of its capital stock to Effie

Narda Corporation agreed to sell all of its capital stock to Effie Corporation for three monthly payments of $200,000. After Effie made the first required payment, it ceased making other payments. T...

Q: Leila Company began an operating lease arrangement with Debco Industries, which

Leila Company began an operating lease arrangement with Debco Industries, which was slated to begin on January 1, at monthly lease payments of $10,000. However, Debco’s negligence prevented Leila fro...

Q: As of January 1, the Lohse Company owes the First Arbor

As of January 1, the Lohse Company owes the First Arbor Bank $350,000 which is due on December 31. Since Lohse seems unable to repay the note, the bank agreed that Lohse can “settle” this balance by a...

Q: James Olds buys a four-year, $1,000

James Olds buys a four-year, $1,000,000 certificate of deposit from the Second National Bank. James will receive 5% interest in year 1; 5.5% in year 2; 6% in year three; and 6.5% interest in year 4....

Q: In order to help induce Jill Gregory to remain as president of

In order to help induce Jill Gregory to remain as president of the Reed Company, in 2000 it promises to pay her (or her estate) $200,000 per year for the next 15 years—even if she leaves the company o...

Q: The Bootsie Holding Company has sales exceeding $10 billion and each

The Bootsie Holding Company has sales exceeding $10 billion and each of its three, wholly-owned subsidiaries has sales exceeding $2 billion. Three years ago, the subsidiaries had “complex” capital st...

Q: Alex Corporation is planning this year to present comparative income statements but

Alex Corporation is planning this year to present comparative income statements but only the current year’s balance sheet. James Johnston, president of Alex Corporation requests your advice as to whet...