Midterm Exam 1 F09 solution

Midterm Exam 1 F09 solution - Print your name here Section...

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Print your name here Section: Midterm Exam 1 Tentative Solution Management 351 Fall 2009 1. This exam consists of 2 sections: multiple choice items and numerical problems. The exam is 10 pages plus this cover page. Please check to see that your exam document is complete. The point value for each type of problem is: A. MULTIPLE CHOICE (21 questions) 70 points B. NUMERICAL PROBLEMS (2 questions, several parts) 80 points TOTAL POINTS 150 points 2. You have 90 minutes to complete this exam. At the end of the 90 minutes, please give me your exam document. It is important that all students cooperate in promptly turning in the exams to insure that no student has any advantage over another. 3. This exam is closed book, closed notes, no laptop--you may use your own calculator. 4. Show all of your calculations when solving numerical and essay problems. Correct answers to numerical problems which are not accompanied by work indicating how the answer was derived will not receive any credit. Even if the answer can be computed in your head, indicate your thought process on paper. Partial credit will be given only where the logic and handwriting can be easily followed . 5. If you think that an additional assumption is necessary to complete a problem, clearly state your extra assumption and continue working the problem. As long as your assumption does not contradict information in the problem and is plausible/justifiable, your answer will be graded using that assumption. 6. If you have a question, please come and ask me
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A. (70 points) MULTIPLE CHOICE ITEMS – 21 questions All multiple choice questions in this section are worth the same amount of points. 1. Which of the following should not be included in the current liabilities section of the balance sheet? a. Trade accounts payable b. Short-term zero-interest-bearing notes payable c. The discount on short-term notes payable d. All of these are included 2. Which of the following statements is false? a. A company may exclude a short-term obligation from current liabilities if the firm intends to refinance the obligation on a long-term basis and demonstrates an ability to complete the refinancing. b. FICA taxes withheld from employees' payroll checks should never be recorded as a liability since the employer will eventually remit the amounts withheld to the appropriate taxing authority. c. Under the cash basis method, warranty costs are charged to expense as they are paid. d. Cash dividends should be recorded as a liability when they are declared by the board of directors. 3. Which of these is not included in an employer's payroll tax expense? a. Union Dues b. F.I.C.A. (social security) taxes c. Federal unemployment taxes d. State unemployment taxes Use the following information to answer questions 4 and 5. The total payroll of Waters Company for the month of October, 2007 was $360,000, of which $90,000
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This note was uploaded on 12/04/2009 for the course MGMT 351 taught by Professor Staff during the Fall '08 term at Purdue.

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Midterm Exam 1 F09 solution - Print your name here Section...

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