1. DHL Express bought material handling equipment for its…
1. DHL Express bought material...
1. DHL Express bought material handling equipment for its hub operations that cost $180,000. Using the MACRS, what's the depreciation expense in Year 3 (using a five-year class)?Submitted: 4 months ago.Category: Multiple Problems
2. Ted Williams made deposits of $500 at the end of each year for eight years. The rate is 8% compounded annually. What's the value of Ted's annuity at the end of eight years? (Use the tables found in the textbook.)
3. The balance sheet lists
A. assets, revenues, and equity.
B. assets, liabilities, and equity.
C. assets, liabilities, and expenses.
D. assets, revenues, and expenses.
4. ***** ***** bought a Scion car for $8,200, putting down $800 and financing the remainder with 60 monthly payments of $179.99. Using the tables found in your textbook, the APR by table lookup is
A. Between 16.00 and 16.25 percent
B. Close to 13½ percent
C. Close to 15 percent
D. Close to 14 percent
5. Points represent
A. an additional cost of receiving the mortgage.
B. 2% of the amount of the loan.
C. 3% up-front payment.
D. monthly payments.
6. Depreciation expense in the declining-balance method is calculated by the depreciation rate
A. times accumulated depreciation at year end.
B. divided by book value at beginning of year.
C. times book value at beginning of year.
D. plus book value at end of year.
7. Alice wants to know how much she'll have to invest today to receive an annuity of $10,000 for six years if interest is earned at 7% annually. She'll make all of her withdrawals at the end of each year. How much should she invest?
8. Achbar Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5%. Achbar Corporation's stockholders' equity to the nearest dollar is
9. For partial-years depreciation, if an asset is purchased on February 8, how many months' depreciation will be taken for the year?
10. In using horizontal analysis, comparative reports are
A. often used.
B. infrequently used.
C. always used.
D. never used.
11. Jamie purchased a condo in Naples, Florida, for $699,000. She put 20% down and financed the rest at 5% for 35 years. What are Jamie's total finance charges?
12. The average daily balance is equal to the sum of daily balances
A. minus number of days in the billing cycle.
B. multiplied by number of days in the billing cycle.
C. divided by number of days in the billing cycle.
D. plus number of days in the billing cycle.
13. Depreciation expense is located on the
A. balance sheet.
B. accounts receivable documentation.
C. income statement.
D. accounts payable documentation.
14. Marc bought a new split level for $200,000. Marc put down 30%. Assuming a rate of 11½% on a 30year mortgage, use the tables found in the textbook to determine Marc's monthly payment.
15. Cost of merchandise sold equals beginning inventory
A. minus net purchases minus ending inventory.
B. plus net purchases plus ending inventory.
C. plus net purchases minus ending inventory.
D. minus net purchases plus ending inventory.
16. What does an amortization schedule show?
A. The portion of payment broken down to interest and principal
B. The balance of interest outstanding
C. The increase to principal
D. The increase in loan outstanding
17. A compact minivan costs $16,000 with a residual value of $1,000. It has an estimated useful life of five years. If the minivan was bought on July 3, what would be the book value at the end of Year 1 using straight-line rate?
18. At the beginning of each year, Jerome invests $1,400 semiannually at 8% for nine years. Using the tables found in the textbook, determine the cash value of the annuity due at the end of the ninth year.
End of exam
19. In calculating the daily balance, cash advances are
A. always added in.
B. sometimes added in.
C. always subtracted out.
D. sometimes subtracted out.
20. An annuity due can use the ordinary annuity table if one extra period is added and
A. one payment is subtracted from total value.
B. three payments are subtracted from total value.
C. two payments are added to total value.
D. one payment is added to total value.