ACG 2021, Introduction to Financial Accounting, Summer 2001, Exam 3 Final :: UFL Florida Business Accounting

2021FNLSM01A 7/18/01Page 1ACG 2021FINAL EXAMSUMMER 2001NAME _____________________________________ SS ____________________________InstructionsNOW Bubble in your section add together on your Scan Sheet.Fill in your name and social security number on this examination and your scansheet.1. Listen carefully for any comments your watch may return related to the exam. Read theseinstructions carefully. Failure to do so may result in your losing points.2. This exam consists of 60 multiple-choice questions, individually worth two points for a total of 120points. Select the BEST answer and mark the appropriate space on the scan sheet with a 2pencil only. You MUST keep your scan sheet face down on the desk when you are notfilling it in.3. You may use only when a non-programmable calculator during the exam. Use of any othercalculator ordain be considered a violation of the honor code. Your exam will be taken fromyou and you will receive a grade of 0.4. At the end of 2 hours, you will be to ld to stop. Put your pencils down IMMEDIATELY.Failure to do so will result in your receiving a zero for the exam.5. The exam consists of 20 pages, including this cover, present value tables and a blank page atthe end. Make sure you have all pages and all questions.6. Have your University of Florida Identification card ready to be checked when you turn inyour exam.7. Assume the accounting entities use a schedule year un slight otherwise noted.8. Assume a 360-day year.9. When you are finished, turn in your scan sheet, as well as your exam. Answers will beposted on the web after the exams are handed back in class.10. The University of Florida policy on academic honesty will be strictly enforced.When you are told to uncovered your exam, turn to thefirst page and find your exam code. Immediatelybubble this in on your scantron.2021FNLSM01A 7/18/01Page 2EXAM codification = AUse the following to answer questions 1-3Bennett Industries purchased a large piece of equipment from Crumpet Compa ny on January 1, 2001. Bennettsigned a note, agreeing to pay Crumpet $400,000 for the equipment on December 31, 2003. The merchandise rate ofinterest for similar notes was 8%. The present value of $400,000 discounted at 8% for three years is $317,520.On January 1, 2001, Bennett recorded the purchase with a debit entry to equipment for $317,520 and a credit to notespayable for $317,520.1. On Bennetts 2001 year-end balance sheet, the book value of the liability for notes payable related to thispurchase would equalA) $317,520.B) an amount less than $317,520.