1.When the number of compounding periods and the interest rate are the same, the present value of an ordinarr annuity will be:

a.less than the present value of an annuity date

b.greater than or equal to the present valueof an annuity date

c.greater than the present value of an annuity date

d.equal to the present value of an annuity date

2.Which of the following is incorect regarding cash equivalents?

a.Treasury bills issued 3 months ago with maturity dates of 3 months or less when purchased

b. money market funds issued now with maturity dates of 3 months or less when purchased

c.Commercial paper issued 6 months ago woth maturity dates of 3 months or less when pirchases

d.All above ate classified as short-term investments.

3.When estimating bad debt expense using the allowance method, which of the following statements is true?

a. Valuation off accounts recievable is bette under the income statement approach then under balance sheet approach.

b. matching is better under the income statement approach then under the balance sheet approach.

c. Aging method is one type of the income statement approach

d. only the balance sheet approach is allowed in gaap