John Smith Is the Controller of Excel Co

question 33

Essay

John Smith is the controller of Excel Co. ,a private company owned by Rita Cooler.John receives a bonus equal to 10 percent of net income,before the bonus,as calculated in accordance with GAAP.
Required:
Explain how John Smith is both the preparer and a user of the financial statements of Excel Co.and whether or not he will likely try to defer income taxes.

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Definitions:

Grand Inquisitor

A character in Dostoevsky's "The Brothers Karamazov" representing authoritarian control in the name of religion, questioning free will.

The Brothers Karamazov

A novel by Fyodor Dostoevsky that explores ethical and philosophical issues through the lives of the Karamazov family in 19th century Russia.

Aristotle

An ancient Greek philosopher and scientist who made significant contributions in logic, metaphysics, ethics, and natural sciences.

Determined

Having a strong motivation or determination to achieve a specific outcome or goal.