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Unformatted text preview: University of Toronto Faculty of Arts and Science and Rotman School of Management Final Examinations, April/ May 2009 MGT 201H1S – Introduction to Financial Accounting Duration: 2 hours Aids allowed: Non-programmable calculator This exam consists of 14 pages including 3 blank pages. Instructions: Please print your name, student number in the spaces provided below. There are thirty multiple choice questions and two problems. Please write your answer for the multiple choice questions on the front of this question paper in the spaces provided below . Clearly show all computations in order to obtain full marks for the problems. GOOD LUCK! _____________________________ ___________________________ Student name ( LAST NAME FIRST) Student number Marks: Answers for the Multiple Choice Questions Part A (30 marks) 1.__________ 16._________ Part B (5 marks) 2.__________ 17._________ Part C (10 marks) 3.__________ 18._________ 4.__________ 19._________ 5.__________ 20._________ Total (45 marks) 6.__________ 21._________ 7.__________ 22._________ 8.__________ 23._________ 9.__________ 24._________ 10._________ 25._________ 11._________ 26._________ 12._________ 27._________ 13._________ 28._________ 14._________ 29._________ 15._________ 30._________ MGT 201H1S Final Exam 1 of 14 PART A ( 30 marks) 1. Which of the following would best describe a contingent liability? a. An obligation to transfer services instead of cash to settle a liability. b. An obligation where the costs will be covered by insurance. c. An obligation with a high degree of uncertainty about the amount or timing of the payment. d. An obligation with a low degree of uncertainty about the amount or timing of the payment 2. For which of the following reasons would a user examine the current liabilities? a. To determine how quickly accounts receivable are collected. b. To determine how much cash will be required to meet obligations in the short-term. c. To determine how much cash will be required to meet obligations in the long-term. d. To evaluate company performance. Use the following information for questions 3 -4: Belmont Inc. offers a two-year warranty against failure of its products. The estimated liability is 4% of sales in the year of sale and 6% in the second year. Sales for 2008 and 2009 were: $2,000,000 and $2,200,000, respectively. They incurred no warranty costs in 2008 but in 2009 they spent $125,000 on repairs related to the warranties from 2008 and 2009. 3. The warranty liability as at the year-end 2008 was: a. $0 b. $80,000 c. $120,000 d. $200,000 4. The warranty expense for 2008 was: a. $75,000 b. $80,000 c. $125,000 d. $200,000 5. The warranty liability as at the end of the 2009 year was: a. $95,000 b. $220,000 c. $295,000 d. $420,000 6. The proceeds from the sale of a bond are equal to: a. the face value of the bond....
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This note was uploaded on 12/21/2010 for the course MGT mgt201 taught by Professor Uppal during the Spring '09 term at University of Toronto- Toronto.
- Spring '09