Reference no: EM133085902

Questions -

Q1. Alaa Abdelnaby played his last game for Duke in Denver in 1990. On a Monday. He placed $30,000 into an account and let it grow at 12% compounded annually for 29 years. Approximately how much will Alaa have accumulated in 2019 (29 years later)?

A. $593,600.

B. $623,900.

C. $802,500.

D. $827,800.

E. $957,100.

Q2. A company recorded the $28,000 adjusting entry for the earning of rent received in advance by debiting assets and crediting expenses for $28,000. Net income is

A. $28,000 understated.

B. $28,000 overstated.

C. $56,000 overstated.

D. $56,000 understated.

E. correctly stated.

Q3. A company recorded the $35,000 adjusting entry for the expiration of accrued wages payable by debiting revenues and crediting liabilities for $35,000. Total liabilities are

A. $35,000 understated.

B. $35,000 overstated.

C. $70,000 overstated.

D. $70,000 understated.

E. correctly stated.

Q4. A company recorded the $41,000 adjusting entry for depreciation by debiting assets and crediting liabilities for $41,000. Total assets are

A. $41,000 understated.

B. $41,000 overstated.

C. $82,000 overstated.

D. $82,000 understated.

E. correctly stated.

Q5. Singh, Inc. is planning to invest $120,000 in a ten-year project. Singh estimates that the annual cash inflow, net of income taxes, from this project will be $22,000. Singh's required rate of return on investments of this type 10%. Information on present value factors is as follows: At 10%, Present value of $1 for ten periods = 0.386; Present value of an annuity of $1 for ten periods = 6.145. At 12%, Present value of $1 for ten periods = 0.322; Present value of an annuity of $1 for ten periods = 5.650. Singh's internal rate of return on his investment is

A. Less than 10%, but more than 0%.

B. 10%.

C. Less than 12%, but more than 10%.

D. 12%.

E. Greater than 12%.