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Unformatted text preview: Feb 4, 2008 Anderson 136A MT 1 v. 1 Name _________________________ Answer multiple choice questions (#1-25) on green scantron. ANSWER #26 IN THE SPACE PROVIDED AND RETURN THIS EXAM!! Amnswer the remaining two questions (27 & 28) in your blue book. WRITE YOUR VERSION # ON YOUR SCANTRON PLEASE!!! 1. The following information is available for Carr Company: Payment for goods during 2004 $82,000 Accounts payable, January 1, 2004 9,000 Inventory, January 1, 2004 10,400 Accounts payable, December 31, 2004 7,200 Inventory, December 31, 2004 9,700 Cost of goods sold for 2004 is a. $80,900. b. $87,100. c. $88,500. d. $79,500. 2. If a company invests in a bond which matures in 10 years and they intend to hold it for that entire time: a. The investment should be recorded at fair value with unrealized gains and losses charged to other comprehensive income. b. The investment should be recorded at fair value with unrealized gains and losses charged to income. c. The investment should be recorded at cost and unrealized gains and losses reflected as an adjustment to opening equity. d. The investment should be recorded at cost on the balance sheet until maturity. 3. 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 be reflected as a cumulative effect of a change in accounting treatment, net of tax on the statement of income. b. It should have no impact to the prior year, and would be accounted for on a "current and forward" basis. c. It should be reflected only in the statement of cash flows. d. It should be reflected as a correction of an error in the statement of stockholder's equity, net of tax and captioned "restatement". MT 1 v. 1--Page 2 4. Increases and decreases in long-term assets and debt, respectively are most likely reflected in the: a. Investing and operating sections of the statement of cash flows, respectively; b. Financing and investing sections of the statement of cash flows, respectively; c. Investing and financing sections of the statement of cash flows, respectively; d. Operating and investing sections of the statement of cash flows, respectively; 5. Which of the following is true? a. Rents occur at the end of each period of an annuity due. b. Rents occur at the beginning of each period of an annuity due. c. None of these. d. Rents occur at the beginning of each period of an ordinary annuity. 6. Which of the following tables would show the largest value for an interest rate of 5% for six periods? a. Present value of 1 b. Future value of an ordinary annuity of 1 c. Present value of an ordinary annuity of 1 d. Future value of 1 7. If a Company obtains a non-controlling 35% ownership and voting interest in another company and it grants them significant influence, they should account for this investment: a. As a consolidated entity b. Using the guidance of FAS 115 c. Under the equity method d. As a hypothetical investment in a non consolidated baboon...
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- Spring '08
- Depreciation, Generally Accepted Accounting Principles, a. b. c.