The Total Assets and the Total Liabilities of Ty Williams

question 55

Multiple Choice

The total assets and the total liabilities of Ty Williams Financial Services,are shown below.During the year,the proprietor made no additional capital contributions,and took drawings of $15,000. $\begin{array}{|l|r|r|} \hline& \text { Assets } & \text { Liabilities } \\\hline \text { Beginning of year } & \$ 395,000 & \$ 290,000 \\\hline \text { End of year } & 455,000 & 320,000\\\hline\end{array}$ What was the amount of net income for the year?

• A) $85,000
• B) $40,000
• C) $45,000
• D) $135,000

Analyze the implications of auditors' loyalty conflicts on financial integrity and ethics.

Comprehend the legal procedures and outcomes under securities laws, specifically Section 10b and Rule 10b-5 of the 1934 Securities Act.

Identify what constitutes scienter in the context of accounting fraud and malpractice.

Recognize an auditor's responsibilities upon discovering illegal activities during an audit.

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Definitions:

Contingency-Fee Case

A legal case where the attorney's fees are contingent upon winning the case, typically paid as a percentage of the settlement or judgment.

Billable Hours

The hours that professionals, especially in legal and consultancy practices, charge their clients for, reflecting the amount of time spent working on client cases.

Nonbillable Hours

Time spent by professionals, like lawyers or consultants, on activities that cannot be directly charged to a client.

Maximize

To increase something to its greatest potential or highest possible level.