Reference no: EM132497896

Question 1: The total cost of borrowing on a 10 year, 4%, $1,000 bond that is sold for $970 is:

a) $370.

b) $400.

c) $430.

d) $970.

Question 2: Rhodes Corporation purchased 500 shares of Frenette common shares for $60 per share as a trading security. The market value at year-end was $62 per share. The shares were sold subsequent to the year-end for $65 per share. The gain or loss on the sale was a:

a) $2,500 gain.

b) $2,500 loss.

c) $1,500 gain.

d) $2,000 gain.

Question 3: A company has credit sales of $150,000 and cash sales of $90,000 during the same year that the Accounts Receivable account decreased by $20,000. What was the total cash received from customers?

a) $220,000

b) $260,000

c) $170,000

d) $130,000

Question 4: Sales (in millions) for a three-year period are: Year 1 $4.0, Year 2 $4.6, and Year 3 $5.0. Using Year 1 as the base year, sales in Years 2 and 3 expressed as a percentage of the base year sales are, respectively:

a) 115% and 125%.

b) 115% and 109%.

c) 15% and 25%.

d) 87% and 80%.