The following independent questions must be answered. Note that the questions may be fill-in-the-blank, multi-selection (choose ALL that apply) or multiple choice.

Question 72 (2 points)

Question 72 options:

Harbour Inc. borrowed $24000 from its bank on March 1, at 5% interest, for 6 months.

How much interest will the company pay over the entire term of this loan?

Question 73 (2 points)

Which of the following transactions does NOT change the net realizable value of accounts receivable? Select all that apply.

Question 73 options:

a)	cash sales

b)	receiving a cheque from a customer whose account receivable was previously written off

c)	a sales return, where the original sale was on account

d)	writing off an account receivable

e)	recording bad debt expense

Question 74 (2 points)

Question 74 options:

Leslie Limited purchased a machine on April 1 for $95000, paying cash. The company also paid $1200 for freight, $600 for installation and testing, $700 for employee training, $800 for supplies to be used in production, and $2400 for a one-year insurance policy. The machine has a residual value of $12000 and a useful life of 5 years.

What is this machine's acquisition cost?

Question 75 (1 point)

Which of the following questions would the division managers of a business be most likely to ask?

Question 75 options:

a)	Can the business pay its existing bank loan, or borrow more?

b)	Can the business pay the increased wages that the union is demanding?

c)	Is each division of the business profitable?

d)	Is the business profitable enough to pay dividends?

e)	Has the business filed its income tax returns correctly and on time?

Question 76 (1 point)

A company changed its inventory costing formula from specific identification to weighted average this year, and disclosed the reason and effect of the change on its financial statements. Which of the following is correct?

Question 76 options:

a)	faithful - violated

b)	going concern - violated

c)	unit-of-measure - violated

d)	timely - followed

e)	comparable - followed

Question 77 (2 points)

Question 77 options:

On November 14 your business sold inventory worth $24000 to a customer for $60000. You shipped it FOB shipping point and the terms were 3/15,n/30. The next day, the appropriate party paid the freight company $1100. Four days later the customer returned 15% of his order. You received payment on November 26.

How much did the customer pay you?

Question 78 (1 point)

Which of the following represents a connection between the balance sheet and the other financial statements?

Question 78 options:

a)	The ending cash balance appears on both the balance sheet and the income statement.

b)	Net income appears on both the balance sheet and the statement of retained earnings.

c)	Retained Earnings appears on both the balance sheet and the statement of retained earnings.

d)	Owners' Equity appears on both the balance sheet and the statement of retained earnings.

e)	The balance sheet is not connected to any other financial statement.

Question 79 (2 points)

Why is the aging method, used to calculate the allowance for doubtful accounts, preferable to using a single percentage for all receivables? Select all that apply.

Question 79 options:

a)	It is the only method allowed by GAAP.

b)	It assumes that accounts which are current are always fully collectable.

c)	It is easier to assign reasonable percentages to several categories than to use one percentage only for all accounts receivable.

d)	It can provide a better estimate than a one-size-fits-all approach.

e)	It recognizes that older accounts are less likely to be collected.