ACCY 111: Accounting Questions! Quiz

14 Questions | Total Attempts: 303

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ACCY 111: Accounting Questions! Quiz - Quiz

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Questions and Answers
  • 1. 
    Present and future value tables of $1 at 3% are presented below: NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $111.030000.970871.00000.970871.03001.0000021.060900.942602.03001.913472.09091.9708731.092730.915143.09092.828613.18362.9134741.125510.888494.18363.717104.30913.8286151.159270.862615.30914.579715.46844.7171061.194050.837486.46845.417196.66255.5797171.229870.813097.66256.230287.89236.4171981.266770.789418.89237.019699.15917.2302891.304770.7664210.15917.7861110.46398.01969101.343920.7440911.46398.5302011.80788.78611111.384230.7224212.80789.2526213.19209.53020121.425760.7013814.19209.9540014.617810.25262131.468530.6809515.617810.6349616.086310.95400141.512590.6611217.086311.2960717.598911.63496151.557970.6418618.598911.9379419.156912.29607161.604710.6231720.156912.5611020.761612.93794  Today Thomas deposited $130,000 in a 2-year, 12% CD that compounds quarterly. What is the maturity value of the CD?
    • A. 

      164,680

    • B. 

      224,694

    • C. 

      137,800

    • D. 

      240,686

  • 2. 
    Present and future value tables of $1 at 3% are presented below: NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $111.030000.970871.00000.970871.03001.0000021.060900.942602.03001.913472.09091.9708731.092730.915143.09092.828613.18362.9134741.125510.888494.18363.717104.30913.8286151.159270.862615.30914.579715.46844.7171061.194050.837486.46845.417196.66255.5797171.229870.813097.66256.230287.89236.4171981.266770.789418.89237.019699.15917.2302891.304770.7664210.15917.7861110.46398.01969101.343920.7440911.46398.5302011.80788.78611111.384230.7224212.80789.2526213.19209.53020121.425760.7013814.19209.9540014.617810.25262131.468530.6809515.617810.6349616.086310.95400141.512590.6611217.086311.2960717.598911.63496151.557970.6418618.598911.9379419.156912.29607161.604710.6231720.156912.5611020.761612.93794  Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $90,000 8 years from now. How much must Carol deposit to accomplish her goal?
    • A. 

      $58,691

    • B. 

      $70,890

    • C. 

      $54,035

    • D. 

      $56,085

  • 3. 
    Present and future value tables of $1 at 3% are presented below: NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $111.030000.970871.00000.970871.03001.0000021.060900.942602.03001.913472.09091.9708731.092730.915143.09092.828613.18362.9134741.125510.888494.18363.717104.30913.8286151.159270.862615.30914.579715.46844.7171061.194050.837486.46845.417196.66255.5797171.229870.813097.66256.230287.89236.4171981.266770.789418.89237.019699.15917.2302891.304770.7664210.15917.7861110.46398.01969101.343920.7440911.46398.5302011.80788.78611111.384230.7224212.80789.2526213.19209.53020121.425760.7013814.19209.9540014.617810.25262131.468530.6809515.617810.6349616.086310.95400141.512590.6611217.086311.2960717.598911.63496151.557970.6418618.598911.9379419.156912.29607161.604710.6231720.156912.5611020.761612.93794  Shane wants to invest money in a 6% CD account that compounds semiannually. Shane would like the account to have a balance of $100,000 3.5 years from now. How much must Shane deposit to accomplish his goal?
    • A. 

      $81,824

    • B. 

      $81,309

    • C. 

      $21,000

    • D. 

      $87,809

  • 4. 
    Present and future value tables of $1 at 3% are presented below: NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $111.030000.970871.00000.970871.03001.0000021.060900.942602.03001.913472.09091.9708731.092730.915143.09092.828613.18362.9134741.125510.888494.18363.717104.30913.8286151.159270.862615.30914.579715.46844.7171061.194050.837486.46845.417196.66255.5797171.229870.813097.66256.230287.89236.4171981.266770.789418.89237.019699.15917.2302891.304770.7664210.15917.7861110.46398.01969101.343920.7440911.46398.5302011.80788.78611111.384230.7224212.80789.2526213.19209.53020121.425760.7013814.19209.9540014.617810.25262131.468530.6809515.617810.6349616.086310.95400141.512590.6611217.086311.2960717.598911.63496151.557970.6418618.598911.9379419.156912.29607161.604710.6231720.156912.5611020.761612.93794  Bill wants to give Maria a $550,000 gift in 6.5 years. If money is worth 6% compounded semiannually, what is Maria's gift worth today? Your Answer:
    • A. 

      $374,523

    • B. 

      $373,128

    • C. 

      $547,250

    • D. 

      $376,048

  • 5. 
    Present and future value tables of $1 at 3% are presented below: NFV $1PV $1FVA $1PVA $1FVAD $1PVAD $111.030000.970871.00000.970871.03001.0000021.060900.942602.03001.913472.09091.9708731.092730.915143.09092.828613.18362.9134741.125510.888494.18363.717104.30913.8286151.159270.862615.30914.579715.46844.7171061.194050.837486.46845.417196.66255.5797171.229870.813097.66256.230287.89236.4171981.266770.789418.89237.019699.15917.2302891.304770.7664210.15917.7861110.46398.01969101.343920.7440911.46398.5302011.80788.78611111.384230.7224212.80789.2526213.19209.53020121.425760.7013814.19209.9540014.617810.25262131.468530.6809515.617810.6349616.086310.95400141.512590.6611217.086311.2960717.598911.63496151.557970.6418618.598911.9379419.156912.29607161.604710.6231720.156912.5611020.761612.93794
    • A. 

      $19,302.

    • B. 

      $20,031

    • C. 

      $20,559

    • D. 

      $19,050

  • 6. 
    Present and future value tables of $1 at 3% are presented below:   N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1 1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000 2 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087 3 1.09273 0.91514 3.0909 2.82861 3.1836 2.91347 4 1.12551 0.88849 4.1836 3.71710 4.3091 3.82861 5 1.15927 0.86261 5.3091 4.57971 5.4684 4.71710 6 1.19405 0.83748 6.4684 5.41719 6.6625 5.57971 7 1.22987 0.81309 7.6625 6.23028 7.8923 6.41719 8 1.26677 0.78941 8.8923 7.01969 9.1591 7.23028 9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969 10 1.34392 0.74409 11.4639 8.53020 11.8078 8.78611 11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020 12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262 13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400 14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496 15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607 16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794   Shelley wants to cash in her winning lottery ticket. She can either receive five, $190,000 semiannual payments starting today, or she can receive a lump-sum payment now based on a 6% annual interest rate. What is the equivalent lump-sum
    • A. 

      $896,249

    • B. 

      $725,931

    • C. 

      $727,436

    • D. 

      $905,758

  • 7. 
    Present and future value tables of $1 at 3% are presented below:   N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1 1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000 2 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087 3 1.09273 0.91514 3.0909 2.82861 3.1836 2.91347 4 1.12551 0.88849 4.1836 3.71710 4.3091 3.82861 5 1.15927 0.86261 5.3091 4.57971 5.4684 4.71710 6 1.19405 0.83748 6.4684 5.41719 6.6625 5.57971 7 1.22987 0.81309 7.6625 6.23028 7.8923 6.41719 8 1.26677 0.78941 8.8923 7.01969 9.1591 7.23028 9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969 10 1.34392 0.74409 11.4639 8.53020 11.8078 8.78611 11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020 12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262 13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400 14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496 15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607 16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794     Jose wants to cash in his winning lottery ticket. He can either receive seven, $6,000 semiannual payments starting today, or he can receive a lump-sum payment now based on a 6% annual interest rate. What would be the lump-sum payment?
    • A. 

      $37,382

    • B. 

      $35,661

    • C. 

      $36,782

    • D. 

      $38,503

  • 8. 
    Present and future value tables of 1 at 11% are presented below. PV ofFV ofPVA of FVA of    $1$1        $1       $11.900901.11000.900901.00002.811621.232101.712522.11003.731191.367632.443713.34214.658731.518073.102454.70975.593451.685063.695906.22786.534641.870414.230547.9129  Spielberg Inc. signed a $190,000 noninterest-bearing note due in five years from a production company eager to do business. Comparable borrowings have carried an 11% interest rate. At what amount should this debt be valued at its inception?
    • A. 

      $210,900

    • B. 

      $190,000

    • C. 

      $112,755

    • D. 

      $101,582

  • 9. 
    Present and future value tables of 1 at 11% are presented below.     PV of FV of PVA of FVA of     $1 $1        $1       $1 1 .90090 1.11000 .90090 1.0000 2 .81162 1.23210 1.71252 2.1100 3 .73119 1.36763 2.44371 3.3421 4 .65873 1.51807 3.10245 4.7097 5 .59345 1.68506 3.69590 6.2278 6 .53464 1.87041 4.23054 7.9129     Polo Publishers purchased a multi-color offset press with terms of $55,000 down and a noninterest-bearing note requiring payment of $40,000 at the end of each year for five years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at:
    • A. 

      $202,836

    • B. 

      $95,000

    • C. 

      $203,274

    • D. 

      $147,836

  • 10. 
    A series of equal periodic payments that starts more than one period after the agreement is called:
    • A. 

      Annuity due

    • B. 

      Ordinary due

    • C. 

      Future annuity

    • D. 

      Deferred selected

  • 11. 
    Yamaha Inc. hires a new chief financial officer and promises to pay him a lump sum bonus four years after he joins the company. The new CFO insists that the company invest an amount of money at the beginning of each year in a 7% fixed rate investment fund to insure the bonus will be available. To determine the amount that must be invested each year, a computation must be made using the formula for:
    • A. 

      Future value of a deferred annuity

    • B. 

      Future value of an ordinary annuity

    • C. 

      Future value of an annuity

    • D. 

      None of these is correct

  • 12. 
    Zulu Corporation hires a new chief executive officer and promises to pay her a signing bonus of $2 million per year for 10 years, starting five years after she joins the company. The liability for this bonus when the CEO is hired:
    • A. 

      Is the present value of a deferred annuity.

    • B. 

      Is zero because no cash is owed for five years

    • C. 

      Is the present value of an annuity due

    • D. 

      Is $20 million.

  • 13. 
    Which of the following must be known to compute the interest rate paid from financing an asset purchase with an annuity?
    • A. 

      Fair value of the asset purchased, number and dollar amount of the annuity payments.

    • B. 

      Fair value of the asset and timing of the annuity payments.

    • C. 

      Number of annuity payments and future value of the annuity.

    • D. 

      Present value of the annuity, dollar amount and timing of the annuity payments.

  • 14. 
    Loan C has the same principal amount, payment amount and maturity date as Loan D. However, Loan C is structured as an annuity due while Loan D is structured as an ordinary annuity. Loan C's interest rate is:
    • A. 

      Higher than Loan D.

    • B. 

      The same as Loan D.

    • C. 

      Indeterminate compared to Loan D

    • D. 

      Less than Loan D.

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