Practice final BBUS3211_SW2_PE_10JUL12

When you have finished return all papers including the

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: u have finished, return all papers, including the exam and the exam answer booklets (used and unused), in the envelope. Failure to do so may result in a FAIL grade. BBUS 3211 • PRACTICE EXAMINATION 2 of 13 Part A—Multiple-Choice Questions (30 marks total) Each multiple‐choice question is worth two marks. Select the best answer for each of the following. 1. Discount on Bonds Payable is charged to interest expense a. Equally over the life of the note. b. Only in the year the note is issued. c. Using the effective interest method. d. Only in the year the note matures. 2. Raja Co. has 100,000 no par value common shares authorized, issued, and outstanding. All 100,000 shares were issued at $10 per share. Retained earnings of the company are $120,000. If 10,000 shares of Raja common were reacquired at $8 and cancelled, a. Shareholders’ equity would decrease $80,000. b. Contributed surplus would decrease $10,000. c. Retained earnings would decrease $10,000. d. Contributed surplus from treasury shares would incre...
View Full Document

This note was uploaded on 02/05/2014 for the course BUS 370 taught by Professor Andreathomas during the Spring '13 term at Capital University.

Ask a homework question - tutors are online