You are the independent accountant assigned to the audit of Neophyte Company.

You are the independent accountant assigned to the audit of Neophyte Company.

You are the independent accountant assigned to the audit of Neophyte Company. The company's accountant, a graduate of Rival State University, has prepared financial statements which contained the following questionable items:
a. The balance sheet reports land at $100,000. Included in this amount is a piece of property held for speculation at a cost of $30,000.
b. Current liabilities include $50,000 for long-term debt that comes due in three months. The company has received a suitable firm commitment to refinance the debt for five years and intends to do so.
c. Investments in marketable securities include $20,000 in short-term, high-grade commercial paper which is a cash equivalent.