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 guggle in your section number on your Scan Sheet.Fill in your name and social security number on this interrogatoryination and your rakesheet.1. Listen carefully for any comments your proctor may have related to to the exam. Read theseinstructions carefully. Failure to do so may progeny in your losing points.2. This exam consists of 60 multiple-choice questions, each worth cardinal points for a total of 120points. Select the BEST answer and remark the appropriate space on the scan sheet with a 2pencil only. You MUST keep your scan sheet face strike down on the desk when you are notfilling it in.3. You may use wholly a non-programmable calculator during the exam. Use of any othercalculator get out 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 ending of 2 hou rs, you will be told 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 nurse 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 subprogram inyour exam.7. film the accounting entities use a calendar year unless otherwise noted.8. deliver a 360-day year.9. When you are finished, turn in your scan sheet, as surface as your exam. Answers will beposted on the web after the exams are handed back in class.10. The University of Florida policy on faculty member honesty will be strictly enforced.When you are told to open your exam, turn to thefirst page and find your exam code. Immediatelybubble this in on your scantron.2021FNLSM01A 7/18/01Page 2EXAM recruit = AUse the following to answer questions 1-3Bennett Industries buyd a large establish of eq uipment from Crumpet Company on January 1, 2001. Bennettsigned a note, agreeing to pay Crumpet $400,000 for the equipment on declination 31, 2003. The market 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 leverage with a debit to equipment for $317,520 and a credit to notespayable for $317,520.1. On Bennetts 2001 closing 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.