SET A:

In Merf's April 30, 20X1, balance sheet, a note receivable was reported as a noncurrent asset and the related accrued interest for eight months was reported as a current asset. Which of the following descriptions would fit Merf's receivable classification?

a. Both principal and interest amounts are due on August 31, 20X1, and August 31, 20X2.

b. Principal is due August 31, 20X2, and interest is due August 31, 20X1, and August 31, 20X2.

c. Principal and interest are due December 31, 20X1.

d. Both principal and interest amounts are due on December 31, 20X1, and December 31, 20X2.

Mill Co.'s trial balance included the following account balances at December 31, 20X1:

Accounts payable$15,000 Dividends payable 1/31/X28,000

Bond payable, due 20X222,000 Notes payable, due 20X320,000

What amount should be included in the current liability section of Mill's December 31, 20X1, balance sheet?

a. $45,000c.$65,000

b. $51,000d.$78,000

Which of the following would be disclosed in the summary of significant accounting policies disclosure note?

Composition of Plant Assets

Inventory Pricing

a.

No

Yes

b.

Yes

No

c.

Yes

Yes

d.

No

No

4. How are management's responsibility and the auditor's report represented in the standard auditor's report?

Management's Responsibility

Auditor's Responsibility

a.

Implicitly

Explicitly

b.

Implicitly

Implicitly

c.

Explicitly

Explicitly

d.

Explicitly

Implicitly

At December 30, Vida Co. had cash of $200,000, a current ratio of 1.5:1, and a quick ratio of .5:1. On December 31, all the cash was used to reduce accounts payable. How did this cash payment affect the ratios?

Current Ratio

Quick Ratio

a.

Increased

No effect

b.

Increased

Decreased

c.

Decreased

Increased

d.

Decreased

No effect

6. Zenk Co. wrote off obsolete inventory of $100,000 during 20X1. What was the effect of this write-off on Zenk's ratio analysis?

a. Decrease in the current ratio but not the quick ratio.

b. Decrease in the quick ratio but not in the current ratio.

c. Increase in the current ratio but not in the quick ratio.

d. Increase in the quick ratio but not in the current ratio.

SET B:

1. A club has 21 members, four of whom are executives. Five members are randomly selected to take part in a survey. a) What is the probability that four non-executive members are chosen? b) What is the expected number of non-executive members?(four marks)2. State which type of distribution (uniform, binomial, hypergeometric, none of these) would model each situation. (six marks) a) Drawing eight names out of a hat without replacement and recording the number of females. b) Generating random numbers between 1 and 100 and recording the number of prime numbers in 20 trials. c) Selecting the winning ticket in a raffle. d) Noting the wait time before you reach the front of a line. e) Recording the number of doubles when rolling two standard dice. f) Recording when the first occurrence of a red jelly bean occurs while selecting jelly beans from a bag.3. A card is repeatedly cut from a standard deck, with replacement, for a total of five cuts. The number of aces is recorded.(four marks) a) Is this a binomial or hypergeometric distribution? Why? b) Rewrite the situation to convert it to a hypergeometric or binomial distribution, as appropriate.4. A total of 5000 tickets were sold for a raffle. The prizes are $1000, $500, $200, and $100. What price should be charged so there is a 60% profit per ticket?(four marks)5. A hockey league holds its annual player draft. The five worst teams from the previous season have a chance to draft first to fifth through a lottery, with more chances for the worse teams. The Panthers get 5 balls, the Wolves get 4 balls, the Kings get 3 balls, the Blues get 2 balls, and the Ducks get 1 ball. a) One ball is drawn to determine which team gets the first pick. Show the probability distribution for each team getting the first pick. b) To determine which team gets the second pick, all the remaining balls of the team that got the first pick are removed, and another ball is picked. What is the probability that the Kings get the first pick and the Panthers get the second pick? c) This process continues until all five picks are made. What is the probability that the teams get their picks in the order written above? d) What is the probability that the Wolves get the second pick? (five marks)6. A lottery has 5 000 000 tickets and each ticket costs $2.00. The table shows the prizes available. Prize ($) Number of Prizes 1 000 000 250 000 2 50 000 10 1 000 50 100 500 10 1 000 5 10 000 What is the expected value of each ticket?(five marks)