Multiple Choice Answers—Conceptual

Item Ans. Item Ans. Item Ans. Item Ans. Item Ans. Item Ans. Item Ans.
31. d S40. d 49. a 58. d 67. b 76. c *85. b
32. b 41. d 50. d 59. c 68. c P77. a *86. c
33. d 42. d 51. a 60. d 69. c 78. d
P34. d 43. d 52. c 61. a 70. c 79. c
35. b 44. d 53. d 62. b 71. b 80. a
36. a S45. c 54. a 63. a 72. c 81. d
37. b S46. d 55. b 64. c 73. a *82. b
38. d P47. d 56. c 65. b 74. b *83. c
39. b 48. d 57. a 66. d 75. d *84. c

Solutions to those Multiple Choice questions for which the answer is “none of these.”
33. As receivables.
42. Many answers are possible.
43. Open accounts resulting from short-term extensions of credit to customers.
44. Open accounts resulting from short-term extensions of credit to customers.
66. Overstate, understate, understate, zero.

Multiple Choice Answers—Computational

Item Ans. Item Ans. Item Ans. Item Ans. Item Ans. Item Ans. Item Ans.
87. b 97. b 107. d 117. b 127. c *137. d
88. d 98. d 108. c 118. a 128. a *138. b
89. b 99. b 109. b 119. a 129. c *139. b
90. c 100. a 110. a 120. b 130. c *140. c
91. b 101. c 111. b 121. c 131. b *141. b
92. c 102. c 112. b 122. c 132. b *142. c
93. c 103. d 113. d 123. d 133. c
94. b 104. c 114. b 124. a 134. c
95. c 105. b 115. b 125. 135. c
96. a 106. b 116. d 126. d 136. c

No. Answer Derivation

87 b $13,500 + $500 = $14,000.

88. d $2,000,000 × .11 = $220,000

$200,000 × (.11 – .05) = 12,000
Interest $232,000
$232,000 ÷ $2,000,000 = .116 = 11.6%.

89. b

90. c $20,000 + $300 + $5,500 = $25,800.

 91. b

92. c $30,000 + $500 + $8,200 = $38,700.

93. c .01 × 360 ÷ 20 = 18%.

94. b $10,000 × (1 – .01) = $9,900.

95. c $10,000 × 100% = $10,000.

96. a $10,000 × (1 – .02) = $9,800.

97. b $100,000 × 1/2 = $50,000.

98. d €125,000 – [(€700,000 × .02) + €1,200] = €109,800.

99. b €125,000 – (€125,000 × .02) = €122,500.

100. a [($1,000,000 – $80,000 – $100,000) × .02] + $40,000 + $100,000 = $156,400.

101. c [($480,000 + $440,000) × .05] + $160,000 + $200,000 = $406,000.

102. c ($12,800,000 × .01) – $6,000 = $122,000.

103. d ($6,500,000 × .08) – $12,000 = $508,000.

104. c $3,000,000 × .08 = $240,000.

105. b $540,000 + ($90,000 – $40,000) = $590,000.

106. b $600,000 – $62,500 = $537,500.

107. d ($50,000 – $4,000) – ($4,500 – $4,000) = $45,500.

108. c $8,000 – $9,000 + X = $5,500; X = $6,500.

109. b ($425,000 – $14,000) × .02 = $8,220.

110. a ($43,000 × .10) – $760 = $3,540.

111. b $60,000 – $3,600 = $56,400.

112. b ($240,000 × .05) – [$10,000 – ($7,200 – $2,100)] = $7,100.

113. d $288,000 × .05 = $14,400.

114. b $80,000 – $4,800 = $75,200.

115. b $480,000 × .05 – [$20,000 – ($14,400 – $4,200)] = $14,200.

116. d $360,000 × .05 = $18,000.

117. b 7% and 7%.

118. a $30,000 × 1.75911 = $52,773.

119. a ($800,000 × .90) = $720,000.

120. b

121. c $50,000 × .10 × 6/12 = $2,500.

122. c $50,000 – $46,000 = $4,000.

123. d $60,000 × .82645 = $49,587.

124. a $2,000,000 × .05 = $100,000.

125. d

126. d

127. c $1,000,000 – [$1,000,000 × (.04 + .08)] = $880,000.

128. a $1,000,000 × .03 = $30,000; $1,000,000 – $30,000 = $970,000.

129. c $335,000 – $6,700 = $328,300.

130. c

131. b $300,000 × .03 = $9,000.

132. b $300,000 – ($300,000 × .08) = $276,000.

133. c $100,000 – ($100,000 × .08) = $92,000.

134. c $400,000 – ($400,000 × .08) = $368,000.

135. c $600,000 ÷ [($100,000 + $150,000) ÷ 2] = 4.8.

136. c $900,000 ÷ [($100,000 + $150,000) ÷ 2] = 7.2.

*137. d $250 – $150 = $100.

*138. b $36,000 – $12,000 + $4,000 + $500 = $28,500.

*139. b $39,140 + $5,000 – $5,200 = $38,940.

*140. c $21,200 + $450 – $900 + $1,450 = $22,200.

*141. b $45,000 + $940 – $320 – $90 + $18 = $45,548.

*142. c $30,000 + $5,400 – $4,900 = $30,500.