Why is independence often considered the cornerstone
What is the definition of the standard of due professional care, and how might a court decide whether an audit firm met the standard? Why is independence often considered the cornerstone of the auditing profession?
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On August 10, Jameson Corporation reacquired 8,000 shares of its $100 par value common stock at $134. The stock was originally issued at $110. 1000 shares were resold on November 21 at $130.
Bennett Company paid cash dividends totaling $150,000 in 2008 and $75,000 in 2009. In 2010, Bennett intends to pay cash dividends of $800,000.
At the beginning of the current year, health company had 20,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock, so that at year end it had 63,800 shares outstanding
Discuss why it is necessary for accountants to assume that an economic entity will remain a going concern. If an entity was perceived to be short term, what effect would that have on the accounting system?
In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles.
Grafton sells a product for $730. Unit sales for May were 500 and a 2% growth in unit sales is forecasted for each month. Grafton pays a sales manager a monthly salary of $3,700 and a commission of 1% of sales in dollars.
Risen Company, a dealer in machinery and equipment, leased equipment to Foran, Inc., on July 1, 2008. The lease is appropriately accounted for as a sale by Risen and as a purchase by Foran.
Cash sales are normally 25% of total sales. Of the credit sales, 30% are collected in the same month as the sale, 65% are collected during the first month after the sale, and the remaining 5% are not collected.
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