Acct2 13456789
2102 Exam 1
Version A
Summer 2010
Select the best answer.
Do not erase on your scantron (these are marked wrong from trace pencil lead).
Ask for a new scantron if you wish to change your answer.
Mismarked scantrons are NOT fixed. Name: __________________________________ Lecture Time: Instructor:________________________
1. In 2008, Miles, Ana and Cindy, who are partners in the MAC Company, had average capital balances of $114,000, $98,000 and $128,000, respectively. The partners share profits and losses by allowing a 12% return on average capital, with any remaining income or loss divided in a ratio of 5:3:2. If the company's income for the current year was $147,600, Cindy’s capital account would increase by:
a. $55,568
b. $44,880
c. $36,720
d. $29,520
2. The total number of shares of stock that a state has approved for issuance to shareholders is referred to as the number of shares:
a. Issued
b. Callable
c. Authorized
d. Outstanding
3. Culley Company wants to invest in a large machine. Their analysis yielded a positive NPV of $47,000. Which of the following statements is not true?
a. Culley should buy the machine.
b. The new equipment will increase net income by $47,000
c. The new equipment is likely to generate a return greater than Culley's cost of capital
d. The Culley Company should recover the cost of the new equipment
e. All of the statements are true.
4. A problem involving periodic payments cannot be solved using annuity tables if:
a. You don't know the amount of the payment.
b. The payments occur after the lump sum.
c. The interest rate is compounded quarterly.
d. The payments occur before the lump sum.
e. The payment amounts are unequal
5. Bill Dunn made an investment on July 1, 2007 which earned $9,000 and a 12% return on July 1, 2008. How much did Bill invest?
a. $60,000
b. $65,000
c. $70,000
d. $75,000
6. Leshonda wins $12,000 in the Georgia Lottery and invests the money in an account that earns 10% interest
Version A
Summer 2010
Select the best answer.
Do not erase on your scantron (these are marked wrong from trace pencil lead).
Ask for a new scantron if you wish to change your answer.
Mismarked scantrons are NOT fixed. Name: __________________________________ Lecture Time: Instructor:________________________
1. In 2008, Miles, Ana and Cindy, who are partners in the MAC Company, had average capital balances of $114,000, $98,000 and $128,000, respectively. The partners share profits and losses by allowing a 12% return on average capital, with any remaining income or loss divided in a ratio of 5:3:2. If the company's income for the current year was $147,600, Cindy’s capital account would increase by:
a. $55,568
b. $44,880
c. $36,720
d. $29,520
2. The total number of shares of stock that a state has approved for issuance to shareholders is referred to as the number of shares:
a. Issued
b. Callable
c. Authorized
d. Outstanding
3. Culley Company wants to invest in a large machine. Their analysis yielded a positive NPV of $47,000. Which of the following statements is not true?
a. Culley should buy the machine.
b. The new equipment will increase net income by $47,000
c. The new equipment is likely to generate a return greater than Culley's cost of capital
d. The Culley Company should recover the cost of the new equipment
e. All of the statements are true.
4. A problem involving periodic payments cannot be solved using annuity tables if:
a. You don't know the amount of the payment.
b. The payments occur after the lump sum.
c. The interest rate is compounded quarterly.
d. The payments occur before the lump sum.
e. The payment amounts are unequal
5. Bill Dunn made an investment on July 1, 2007 which earned $9,000 and a 12% return on July 1, 2008. How much did Bill invest?
a. $60,000
b. $65,000
c. $70,000
d. $75,000
6. Leshonda wins $12,000 in the Georgia Lottery and invests the money in an account that earns 10% interest