1) which of the following statements is true about U.S. Rule?

Ait's never used by banks

Bit allows borrowers to receive interest credit

Cit's hardly used today

Dit's used by only banks

2) Darlene Ramirez bought a home for $140,000. She put 20% down with a mortgage rate of 7.5% for 25

years. What are her yearly payments?

A$12,415.20

B$1,776.00

C$9,329.61

D$9,932.16

3) Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as

12.5%. Jay Corporation's stockholders' equity to the nearest dollar is

A$140,720,000.

B$1,407,200.

C$140,720.

D$14,720

4) The acid test ratio does not include

Ainventory.

Bcash.

Caccounts receivable.

Dsupplies.

5) Which one of the following is not used to calculate net sales?

APurchases

BSales returns and allowance

CGross sales

DSales discount

6) Use the following data to calculate the cost of merchandise sold:

Sales: $80,000

Beginning inventory: $5,000

Purchases: $21,800

Purchase discounts: $790

Ending inventory: $5,100

A$21,650

B$20,190

C$21,560

D$20,910

7) If a car is depreciated in four years, what is the rate of depreciation using twice the straight-line rate?

A25%

B75%

C100%

D50%

8) Which one of the following methods is not based on the passage of time?

ADeclining-balance method

BNone of these

CUnits-of-production method

DStraight-line method

9) Depreciation expense is located on the

Abalance sheet.

Bincome statement.

Cthe accounts receivable documention.

Dthe accounts payable documentation.

10) A new piece of equipment costs $18,000 with a residual value of $600 and an estimated useful life of

five years. Assuming twice the straight-line rate, the book value at the end of year 2 using the decliningbalance

method is

A$6,480.

B$11,520.

C$18,000.

D$7,200.

11) Depreciation expense in the declining-balance method is calculated by the depreciation rate

Adivided by book value at beginning of year.

Bmultiplied by accumulated depreciation at year end.

Cplus book value at end of year.

Dmultiplied by book value at beginning of year.