plugin-A471f10 Practice Exam 3

Plugin-A471f10 - UNIVERSITY OF MICHIGAN ROSS SCHOOL OF BUSINESS ACCOUNTING 471 PRINCIPLES OF FINANCIAL ACCOUNTING FALL 2010 PRACTICE EXAM#3 Please

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
UNIVERSITY OF MICHIGAN ROSS SCHOOL OF BUSINESS ACCOUNTING 471 PRINCIPLES OF FINANCIAL ACCOUNTING FALL 2010 PRACTICE EXAM #3 Please print your name above. The exam is closed-book. For your convenience, present value tables have been provided at page 10. You may use a calculator. You will have 75 minutes to complete the exam. Do your own work. This exam consists of 20 multiple choice questions worth 4 points each. Read each question carefully. Answer all questions on the scantron answer sheet, using only a No. 2 pencil to record your answers. Mark your answer on the scantron sheet by blackening the appropriate space. Make no extraneous marks on the answer sheet, and if you must change an answer, be sure that your erasure is complete. You have seventy-five minutes to complete this exam. At the conclusion of the seventy-five minutes, you will be instructed to read the Business School Honor Policy and sign below to indicate your compliance with the policy. Your exam will not be graded if the statement is not signed. Business School Honor Policy: We, the members of the Business School community --- students, faculty, and staff --- commit ourselves to do our work and perform our duties honestly. We understand that in striving for excellence in performance, our personal and institutional integrity is our most precious asset; and accordingly, we will not knowingly act in ways that erode our integrity. Because we are an academic community, honesty in our academic work is vital. Therefore, we pledge neither to cheat nor to tolerate cheating. I acknowledge that I have been directed to work individually on this exam. I certify that I have neither given nor received prohibited aid on this exam. Signed _______________________________________________
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 1. When a repair or replacement occurs within the warranty period: a. Warranty expense is increased. b. Repair expense is increased. c. Estimated warranty payable is decreased. d. Estimated warranty payable is increased. e. Warranty expense is decreased. 2. Swift Co. issued $300,000 of its 10-year bonds on January 1 of the current year. The bonds have a face interest rate of 10% and pay interest on June 30 and December 31. The bonds were issued to yield 14%. What were the proceeds of this bond issue? a. $395,340 b. $300,000 c. $238,290 d. $236,310 e. $328,216 3. ABC Company issued 4%, three-year bonds with face value of $120,000 at 96. What is the company’s total interest e xpense over the life of the bonds? a. $ 4,800 b. $14,400 c. $19,200 d. $18,400 e. None of the above
Background image of page 2
3 4. Brewer, Inc. reported the following from its balance sheets for 2006 and 2005: 12/31/2006 12/31/2005 Bonds Payable $1,000,000 $1,000,000 Discount on Bonds Payable 41,540 49,200 Premium on Bonds Payable 8,420 10,730 No bonds were issued or retired during 2006. Brewer made interest payments during the year totaling $100,000. What was Brewer’s interest expense related to the bonds for the year ended December 31,
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/26/2011 for the course ACCT 471 taught by Professor Jeffwilliams during the Fall '10 term at University of Michigan.

Page1 / 10

Plugin-A471f10 - UNIVERSITY OF MICHIGAN ROSS SCHOOL OF BUSINESS ACCOUNTING 471 PRINCIPLES OF FINANCIAL ACCOUNTING FALL 2010 PRACTICE EXAM#3 Please

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online