Question 1.1. Tammy wants to buy a car that costs $10,000 and wishes to know the amount of the monthly payments, which will be made at the first of the month, with interest of 12% on the unpaid balance. She should use a table for the: (Points : 1)

Present value of 1. Present value of an ordinary annuity of 1. Present value of an annuity due of 1. Future value of an annuity due of 1.

Question 2.2. On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 10? (Points : 1)

Accounts receivable 7,840 Sales 7,840

Accounts receivable 8,000 Sales 8,000 Accounts receivable 7,840 Cash discounts 160 Sales 8,000 Account receivable 8,000 Cash discounts 160 Sales 7,840

Question 3.3. Loan A has the same original principal, interest rate, and payment amount as Loan B. However, Loan A is structured as an annuity due, while Loan B is structured as an ordinary annuity. The maturity date of Loan A will be: (Points : 1)

Earlier than Loan B. Later than Loan B. The same as Loan B. Indeterminate with respect to loan B.

Question 4.4. George Jones is planning on a cruise for his 70th birthday party. He wants to know how much he should set aside at the beginning of each month at 6% interest to accumulate the sum of $4,800 in five years. He should use a table for the: (Points : 1)

Future value of an ordinary annuity of 1. Future value of an annuity due of 1. Future value of 1. Present value of an annuity due of 1.

Question 5.5. On November 10 of the current year, Cherokee Industries sold materials to a customer for $8,000 with credit terms 2/10, n/30. Cherokee uses the net method of accounting for cash discounts. What entry would Cherokee make on November 10? (Points : 1)

Accounts receivable 7,840 Sales 7,840 Accounts receivable 8,000 Sales 8,000 Accounts receivable 7,840 Cash discounts 160 Sales 8,000 Accounts receivable 8,000 Cash discounts 160 Sales 7,840

Question 6.6. When you use an aging schedule approach for estimating uncollectible accounts: (Points : 1)

Bad debts expense is measured indirectly, and the Allowance for uncollectibles balance is measured directly. Bad debts expense is measured indirectly, and the Allowance for uncollectibles balance is measured indirectly. Bad debts expense is measured directly, and the Allowance for uncollectibles balance is measured directly. Bad debts expense is measured directly, and the Allowance for uncollectibles balance is measured indirectly.

Question 7.7. Zulu Corporation hires a new chief executive officer and promises to pay her a signing bonus of $2 million per year for 10 years, starting five years after he joins the company. The liability for this bonus when the CEO is hired: (Points : 1)

Is the present value of a deferred annuity. Is the present value of an annuity due. Is $20 million. Is zero because no cash is owed for five years.

Question 8.8. Which of the following is recorded by a credit to Accounts receivable? (Points : 1)

Sale of inventory on account. Estimating the annual allowance for doubtful accounts. Estimating annual sales returns. Write-offs of bad debts.

Question 9.9. LeAnn wishes to know how much she should set aside now at 7% interest in order to accumulate a sum of $5,000 in four years. She should use a table for the: (Points : 1)

Present value of 1. Future value of 1. Present value of an ordinary annuity of 1. Future value of an annuity due of 1.

Question 10.10. Sandra won $5,000,000 in the state lottery which she has elected to receive at the end of each month over the next thirty years. She will receive 7% interest on unpaid amounts. To determine the amount of her monthly check, she should use a table for the: (Points : 1)

Present value of an annuity of 1. Future value of an annuity due of 1. Present value of an ordinary annuity of 1. Future value of an ordinary annuity of 1.