Use the below present value tables for problems 1, 2 and 3

	Present Value of $1			Present Value of an Annuity of
	Discount Rate			$1 Discount Rate
Periods	8%	10%		8%	10%
5	0.6806	0.6209		3.9927	3.7908
7	0.5835	0.5132		5.2064	4.8684
9	0.5002	0.4241		6.2469	5.759

1.) The present value of $3,000 to be received in 7 years at 10% is: A. $616.22 B. $1,539.60 C. $3,000.00 D. $5,845.67

2.) The present value of $3,000 to be received every year for 9 years, at 10%, is:

A. $7,073.80 B. $12,273.00 C. $17,277.00 D. $27,000.00

3.) The present value of an obligation of $4,000 payable in 7 years at 8% is:

A. $1,760 B. $2,334 C. $3,206 D. $3,680

4.) Long-lived, intangible assets such as leasehold improvements, patents, and copyrights are all subject to: A. depreciation B. amortization C. depletion D. consolidation

5.) The intangible asset "goodwill:"

A. represents the management team's assessment of its value to the company. B. may arise when one company purchases another company. C. arises because the market value of a company's assets is greater than cost. D. all of the above are correct.

6.) Many current liabilities are affected by accrual accounting entries. This happens because:

A. liabilities are usually paid when they are incurred. B. accrual accounting involves recognizing liabilities before they are paid. C. the only way to reduce a liability account balance is with an adjusting entry. D. accrual accounting frequently involves recognizing liabilities before they are incurred.

7.) Which of the following is not usually associated with bonds?

A. Coupon rate. B. Maturity value.. C. Face amount.

8.) Fred Jones owns 56 shares of the Robust Corporation's stock. Robust announces a 3 for 2 stock split. How many shares will Fred have after this split? A. 178 shares. B. 112 shares. C. 84 shares. D. 56 shares.

9.) Braco has 40,000 shares of $100 par value common stock outstanding, and 10,000 shares in the treasury. The number of additional shares that would be issued in a 5% stock dividend is:

A. 500 B. 1,000 C. 1,500 D. 2,000

10.) Use the appropriate information from the data provided below to calculate operating income for the year ended December 31, 2011.

Cost of goods sold				$117,000.00
General and administrative expenses				$48,000.00
Net cash provided by financing activities				$69,000.00
Dividend				$16,000.00
Extraordinary loss from a flood, net of tax
tax savings of $32,000				$74,000.00
Income tax expense				$11,000.00
Other selling expense				$26,000.00
Net sales				$278,000.00
Advertising expense				$39,000.00
Accounts receivable				$33,000.00

11.) The balance sheet caption for common stock is: Common stock, $10 par value, 7,000,000 shares authorized, 5,700,000 shares issued, 5,500,000 shares outstanding. (a.) Calculate the dollar amount that will be presented opposite of this caption. (b.) Calculate the total amount of a cash dividend of $1.00 per share. (c.) What accounts for the difference between issued shares and outstanding shares?