You have just won the lottery and just elected to receive $50,000 per year for 20 years. Assume that a 4 percent interest rate is used to evaluate the annuity and that you receive each payment at the beginning of the year. a) What is the present value of the lottery? b) How much interest

Joe Accountant and Mary Supervisor are very busy in meeting some deadlines in their department. The have been under a great deal of pressure to meet the deadlines. All week long they have worked long hours. It is Thursday afternoon and Rudy Auditor comes in and says to Mary that he needs certain files and

The first place the auditor in charge should go on arriving at a company is to visit the CEO. This is important to touch base with the CEO and get any comments the CEO may have. I know of one case where this visit provided the auditor some important information that would not be known

You have completed the auditing of Company A and have found $10,000 purchase of a fixed asset was recorded as maintance expense. The company has $100,000 million in fixed assets, net income of 15 million and total assets of 500,000 million? What should the company do when they find out about this error in accounting?

Audit of general motors revenue. Each car and truck has an invoice on the window and is in GM s computer system, and that 8 million cars and trucks were sold. The automobile revenues of General Motors are $100 billion. How many invoices out of 8 million would you want to examine in order to

Explain what the following five words mean to you non CPA audit, financial audit, compliance audit, operational audit, fraud audit.

As audit manager you realize that to complete the audit of xyz company you will need to bring in two more auditors and another audit supervisor March 15th 2010. However the cost of the additional auditors will cause the audit manager to increase the cost of Audit of XYZ company by $45,000. Without the additional

The company in question had a very significant amount of plant assets and also had a very significant maintenance expense each year. The company goals were reflected at every level of the company. The CEO knew that his job was on the line and to keep it he had to meet certain earnings goals. In

Carver World Inc. paid out $22.5 million in total common dividends and reported $278.9 million of retained earnings at year end. The prior year s retained earnings were $212.3 million. What was the net income? Assume that all dividends declared were actually paid. Show all relevant calculation s.

Capital City Construction (CCC) needs $1 million of assets to get started, and it expects to have a basic earning power ratio of 20%. CCC will own no securities, so all of its income will be operating income. If it so chooses, CCC can finance up to 50% of its assets with debt, which will

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