1-Stark Industries made a $10,000 sale on account with the terms 2/10, n/30. If Stark Industries uses the net method to record sales made on credit, the journal entry recording the sale should include which of the following?

a

Sales discounts for $200 and debit accounts receivable for $10,000

b

Debit accounts receivable for $9,800

c

Sales discounts for $200 and debit accounts receivable for $9,8002

d

Debit accounts receivable for $10,000

2- Assume the Bluth Company deposits $25,000 in a First National Bank account which earns interest at 6% per annum, compounded semi-annually. Assuming interest is reinvested, how much will the Bluth account have after five years?

a

$32,507

b

$33,598

c

$35,211

3-Dana purchases pens from the online wholesaler UnilateralFederal.org, which offers her a discount to encourage early payment. What is that type of discount called?

a

Trade discount

b

Nominal discount

c

None of these

d

Cash discount

4- For __________, present value concepts are not used.

a	leases
b	sinking funds
c	pensions
d	prepaid insurance