ACG 2021, Introduction to Financial Accounting, Summer 2001, Exam 3 Final :: UFL Florida Business Accounting

2021FNLSM01A 7/18/01 Page 1 ACG 2021 FINAL EXAM SUMMER 2001 NAME _____________________________________ SS# ____________________________ Instructions: NOW: Bubble in your section number on your Scan Sheet. Fill in your name and social security number on this examination and your scan sheet. 1. Listen carefully for any comments your proctor may have related to the exam. Read these instructions carefully. Failure to do so may result in your losing points. 2. This exam consists of 60 multiple-choice questions, each worth two points for a total of 120 points. Select the BEST answer and mark the appropriate space on the scan sheet with a #2 pencil only. You MUST keep your scan sheet face down on the desk when you are not filling it in. 3. You may use ONLY a non-programmable calculator during the exam. Use of any other calculator will be considered a violation of the honor code. Your exam will be taken from you and you will receive a grade of 0. 4. At the end of 2Â ½ hours, 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 value tables and a blank page at the end. Make sure you have all pages and all questions. 6. Have your University of Florida Identification card ready to be checked when you turn in your exam. 7. Assume the accounting entities use a calendar year unless otherwise noted. 8. Assume a 360-day year. 9. When you are finished, turn in your scan sheet, as well as your exam. Answers will be posted on the web after the exams are handed back in class. 10. The University of Florida policy on academic honesty will be strictly enforced. When you are told to open your exam, turn to the first page and find your exam code. Immediately bubble this in on your scantron. 2021FNLSM01A 7/18/01 Page 2 EXAM CODE = A Use the following to answer questions 1-3: Bennett Industries purchased a large piece of equipment from Crumpet Company on January 1, 2001. Bennett signed a note, agreeing to pay Crumpet $400,000 for the equipment on December 31, 2003. The market rate of interest 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 purchase with a debit to equipment for $317,520 and a credit to notes payable for $317,520. 1. On Bennett's 2001 year-end balance sheet, the book value of the liability for notes payable related to this purchase would equal A) $317,520. B) an amount less than $317,520.