Reference no: EM132674904

Problem 1: Depreciation expense is located on the

A. balance sheet.

B. income statement.

C. accounts payable documentation.

D. accounts receivable documentation.

Problem 2: Don made deposits of $500 at the end of each year for eight years. The rate is 8% compounded annually. Calculate the value of Don's annuity at the end of eight years.

A. $4,318.30

B. $2,873.30

C. $2,837.03

D. $5,318.30 End of exam

Problem 3: Justin Chan bought a Scion car for $8,200, putting down $800 and financing the remainder with 60 monthly payments of $179.99. What the APR by table lookup is

A. Close to 15 percent

B. Close to 14 percent

C. Between 16.00 and 16.25 percent

D. Close to 13½ percent

Problem 4: The acid test ratio does not include

A. cash.

B. accounts receivable.

C. inventory.

D. supplies.