1. On January 1, Bestway, Inc. signed a $175,000, 8%, 30-year mortgage that requires semiannual payments of $7,735 on June 30 and December 31 of each year. The journal entry for the first semiannual payment (with interest rounded to the nearest dollar) is

A. debit Interest expense, $735; debit Mortgage payable, $7,000; credit Cash, $7,735.

B. debit Interest expense, $7,000; debit Mortgage payable, $735; credit Cash, $7,735.

C. debit Interest expense, $7,000; debit Mortgage expense, $735; credit Cash, $7,735.

D. debit Mortgage payable, $7,735; credit Cash, $7,735.

2. If a company has 90-day credit terms, its expected accounts receivable turnover is

A. 4.

B. 1.

C. 2.

D. 12

3. Proceeds from credit card and debit card transactions are generally deposited into a business's bank account within

A. a month.

B. one to three days.

C. a week.

D. three to five days.

4. Taxes are an example of a/an _______ liability.

A. estimated

B. deferred

C. contingent

D. accrued

.

5. ACME Corporation lent $25,000 to Hastings, Inc. for 75 days at 7% interest on November 22, 2014. How much interest will have accrued to ACME Corporation on December 31, 2014, assuming a 360-day year?

A. $204.52

B. $189.58

C. $364.58

D. $175.00

6. Which of the following would not be considered a cash equivalent?

A. Certificates of deposits

B. Time deposits

C. Coin

D. Treasury notes

7. The following is selected data for Allied Industries:

Allied Industries	2014	2013
Sales	$1,642,000	$1,743,000
Net Income	$173,000	$191,000
Total Current Assets	$177,000	$163,000
Property, Plant, and Equipment	$724,000	$644,000

What is the return on assets (rounded to the nearest tenth of a percent) for 2014?

A. 20.3

B. 23.9

C. 25.3

D. 19.2

8. The carrying amount equals Bonds Payable minus the discount amount or

A. minus the premium amount.

B. plus half the discount amount.

C. minus the par amount.

D. plus the premium amount.

9. The journal entry for $300,000 of bonds that are issued at 95 is

A. debit Cash, $300,000; credit Bonds payable, $300,000.

B. debit Cash, $285,000; debit Discount on bonds payable, $15,000; credit Bonds payable, $300,000.

C. debit Cash, $300,000; credit Bonds payable, $285,000; credit Premium on bonds payable, $15,000.

D. debit Cash, $285,000; credit Bonds payable, $285,000.

10. At the end of a/ an _______ lease, the lessee will return the asset to the lessor.

A. incomplete

B. capital

C. transferring

D. operating