Cpa responsibility

Assignment Help Accounting Basics
Reference no: EM1358258

Molly, a CPA in public practice is on the board of directors of a local bank. One of Molly's clients has a $100,000 ninety day loan from the bank. Molly, while preparing the clients tax return finds that the client's revenues from their business is down significantly. Any further deterioration may very well result in the client's bankruptcy. At a meeting of the banks' directors Molly finds out that her client has requested that the bank renew their loan of $100,000 for another ninety days. From the comments of the other board members in discussing the client's request it is obvious that they are unaware of the client's current business conditions. Just before the vote is taken as to renew the loan the chairman who is aware of Molly's relationship to the client turns to her and asks her for her comments. What are Molly's responsibilities? What are the issues here? Advise Molly on what she should do and why. Remember you need to have solid research to defend your position.

Reference no: EM1358258

Questions Cloud

Calculate stock price and growth rate of dividends : Stormy Weather has no investment opportunities. Its return on investment is equal to the discount rate which is 10%. Its expected earnings this year are $3 each share.
Effectiveness of various types of psychotherapy : Could you explain the research on the effectiveness of various types of psychotherapy, and on the effectiveness of psychotherapy in general?
Explain principle of supply chain management : Which of the following is not a principle of supply chain management? Choose one answer.Segment customers by service needs and then tailor services to those particular segments
What would the government likely challenge a merger : What would the government likely challenge a merger where a firm with 20% share is attempting to acquire a firm with a 5% share.
Cpa responsibility : Molly, a CPA in public practice is on the board of directors of a local bank. One of Molly's clients has a $100,000 ninety day loan from the bank. Molly, while preparing the clients tax return finds that the client's revenues from their business i..
Presume you are a chief administrator of a health care : Presume you are a chief administrator of a health care organization and the current strategic positioning of your organization and the marketing plan.
Strategic alliances among supply chain partners : Strategic alliances among supply chain partners - Evaluate the need for a strategic alliance among supply chain partners.
Limitations of using financial statements to make decisions : How are the income statement and statement of cash flows used to make business decisions? What are the advantages and limitations of using them to make decisions affecting the future of a business?
Regional trading blocs and globalization : What are four unpopular issues with globalization for Americans? You must provide examples to support your answer.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Fixed budget income statement by contribution margin format

Prepare a fixed budget income statement for the planned level of sales and production. Prepare a fixed budget income statement for the actual level of sales and production.

  Preferred shareholders-common stockholders

What amount of dividends must the company pay the preferred shareholders in 2009 if they wish to pay the common stockholders a dividend?

  Importance and usefulness of accounting cycle

Please discuss the value of the accounting cycle to a company including: Normal length of the cycle-Integration with required governmental reporting

  Journal entry-sales allowances

On September 11, the customer who had been billed on August 18 complained about being overcharged and was granted a credit of $350.

  Allocation of cost to different departments

Assume that the company follows the practice of allocating all maintenance department costs incurred each month to the divisions in proportion to the actual machine-hours recorded in each division for the month. On this basis, how much cost would ..

  Recording journal entries for bonds

On January 1, 2010, Parabolic Company issued 8% bonds with a face amount of $72.9 million, dated January 1. The bonds mature in 2025 (15 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually.

  Successful efforts method of accounting for oil exploration

Using the successful efforts method of accounting for oil and gas exploration costs, how much exploration expense would be shown in Exploratory's income statement for 2013?

  Prepare journal entry-income statement

The following information has been obtained for the Kerdyk Corporation. Compute taxable income and income tax payable for 2007.

  Journal entries and schedule

During the past year, a company completed the following transactions related to the acquisition of property and the construction thereon of a new factory:

  Calculate the portfolio beta and then apply sml

Mary has a three-stock portfolio and is interested in estimating its overall return next year. She has $25,000 invested in Orange Corp-Calculate the portfolio beta and then apply the SML.

  Cash and stock dividend journal entries

The books of Conchita Corporation carried the following account balances as of December 31, 2010. Prepare the journal entries required for the dividend declaration and payment assuming that they occur simultaneously.

  Determining the losses claim

During 2012, Lorraine sold the following assets: business equipment for a $8,000 loss, stock investment for a $10,000 loss, and her principal residence for a $26,000 loss. how much of these losses may Lorraine claim on her 2012 return?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd