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Unformatted text preview: 1 CONCORDIA UNIVERSITY FINANCIAL ACCOUNTING DEPARTMENT OF ACCOUNTANCY COMM 217 ALL SECTIONS FINAL EXAMINATION Winter 2009 Duration: 3 hours Instructions (very important) : 1. This examination paper consists of 12 pages including this page and the present value tables. Please make sure your copy has all pages before commencing to write. 2. You must answer the multiple choice questions by using the computer input sheet ; darken the letter you choose in pencil on the computer input sheet. Write all your answers to the other questions in the examination answer booklet . You may answer the questions in any order you prefer. Only the answers on the computer input sheet and in the examination booklet will be graded. 3. Read the questions carefully and budget your time wisely. Show all calculations. 4. This is a closed book examination. However, a silent hand-held (not graphical) calculator and one standard language (not electronic) dictionary are permitted. 5. Invigilators will not answer questions (unless you think there is an error in the question). 6. Return the exam along with the computer input sheet and answer booklets when you have finished. Question Topic Total Marks 1 Multiple Choice 24 2 Accounting for Long-term Assets 19 3 Accounting for Bonds 17 4 Preparation of cash flow statement 21 5 Analysis of Financial Statements 19 Total 100 2 QUESTION 1 (24 marks; 43 minutes) Multiple Choice For each of the following, choose the letter that corresponds to the best answer, and show your answer on the computer input sheet . Each correct answer is worth 1.5 marks. 1. Amortization expense is recognized primarily a. to comply with government regulations. b. to measure the decline in the sales price of a long-term asset. c. to allocate the original cost of an asset over its estimated useful life. d. to reduce the original cost of amortizable assets to their current replacement cost. 2. Triton Corporation purchased a truck for $85,000 on January 1, 2008. The truck had an estimated useful life of 500,000 km and an estimated residual value of $5,000. In 2008, the truck was driven 50,000 km and, in 2009, 75,000 km. What is the book value of the truck at the end of 2009 under the units of production method? a. $77,000. b. $65,000. c. $20,000 d. None of the above 3. Goodwill is valued at: a. The total amount of cash paid to acquire another company. b. The difference between the price paid to acquire an ongoing business and the fair value of the identifiable assets acquired less liabilities assumed. c. The total amount of cash paid out to acquire another company, less the value of the identifiable assets acquired. d. The difference between the fair value of the identifiable assets acquired and the liabilities assumed....
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This note was uploaded on 12/09/2009 for the course ACCO comm 217 taught by Professor Mroz during the Fall '09 term at Concordia Canada.
- Fall '09
- Financial Accounting