F09_MT1 - ECON 3A- 10/19/09 ANDERSON- MT1 VERSION 1WRITE ON...

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10/19/09 ECON 3A- ANDERSON- MT1 VERSION 1—WRITE ON SCANTRON!! 1. Present value is a. all of these. b. the value now of a future amount. c. the amount that must be invested now to produce a known future value. d. always smaller than the future value. 2. An amount is deposited for eight years at 8%. If compounding occurs quarterly, then the table value is found at a. 2% for 32 periods. b. 8% for eight periods. c. 2% for eight periods. d. 8% for 32 periods. 3. Which of the following is true? a. Rents occur at the beginning of each period of an annuity due. b. Rents occur at the end of each period of an annuity due. c. Rents occur at the beginning of each period of an ordinary annuity. d. None of these. 4. On January 15, 2004, Grant Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, 2008, at an estimated cost of $2,500,000. Grant plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, 2004. Future value factors are as follows: Future value of 1 at 10% for 5 periods 1.61 Future value of ordinary annuity of 1 at 10% for 4 periods 4.64 Future value of annuity in advance of 1 at 10% for 4 periods 5.11 Grant should make four annual deposits of a. $625,000. b. $444,761. c. $489,237. d. $538,793. 5. Which of the following facts concerning fixed assets should be included in the summary of significant accounting policies? Depreciation Method Composition ——————————————————— ——————————— a. Yes No b. Yes Yes c. No Yes d. No No
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6. Items which do not appear on the income statement above the tax provision should be presented on a "net of tax" basis. a. false b. true 7. A Company has sold a portion of their business during the year. This should be presented in the income statement: a. The operations during the portion of the year should be included in the operating section of the income statement and any gain or loss from the sale of the discontinued operation should be presented as "discontinued operations" on a net of tax basis. b. As a discontinued operation, in one line-tem on the income statement, and presented net of tax. c. As a discontinued operation in two components, (1) the results of operating the operation until it was sold and (2) any gain or loss from the sale of the operation. Both should be presented net of tax. d. Should not impact the income statement, and be reported solely in the statement of cash flows. 8. If there is a change in accounting estimate which would have resulted in an additional charge to a prior year expense, which of the following statements is true: a. It should have no impact to the prior year, and would be accounted for on a "current and forward" basis. b.
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This note was uploaded on 05/18/2011 for the course ECON 136A taught by Professor Anderson during the Spring '08 term at UCSB.

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F09_MT1 - ECON 3A- 10/19/09 ANDERSON- MT1 VERSION 1WRITE ON...

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