Essay on Acct 2 Final Exam Best Version

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ACCT 2102 Summer 2010 Final Exam – Version A Name:___________________________ Instructor:________________________ The exam is 42 questions worth 7.5 points apiece. Maximum score is 300 SELECT THE BEST ANSWER. MARK THE SCANTRON WHEN YOU ARE COMPLETELY FINISHED (to avoid erasures). ANSWERS RECORDED ON THE SCANTRON ARE FINAL. THE BOOK EXHIBIT OF IMPORTANT FINANCIAL RATIOS IS ATTACHED TO THIS EXAM. USE THESE RATIOS FOR THE EXAM CALCULATIONS. Use the information for Pets, Inc. (provided separately) to answer questions 1-18. 1. Compare the speed with which Pets Inc. collects cash from its customers to the industry average for 2008 and 2007. How did Pets Inc. compare to the industry? 2008 2007 a. Better Better b. Worse Worse c. Worse…show more content…
13.34%, 4.3% d. Cannot determine from information given 18. Based on Pet Inc.’s net revenue change from 2007 to 2008, the percentage change in a horizontal analysis is: : a. 6.88% b. 7.39% c. 73.9% d. 3.36% e. 4.32% 19. Where can you find a company’s balance in the ADDITIONAL PAID-IN CAPITAL account at the end of the year? a. In the discontinued operations section of the income statement b. In the operating section of the Statement of Cash Flows c. In the equity section of the balance sheet d. In the current assets of the balance sheet e. All of the above 20. During the current year, Jacob, Alicia and Shawn, who are partners in the JAS Company, had average capital balances of $57,000, $49,000 and $64,000, respectively. The partners share profits and losses by allowing a 12% return on average capital, with any remaining income or loss divided in a ratio of 5:3:2. If the company's income for the current year was $73,800, Shawn's capital account would increase by: a. $14,760 b. $18,360 c. $22,440 d. $27,784 21. Kidron Corporation has $5,000,000 in debt and $15,000,000 in total assets. If the debt carries an interest rate of 12% and the stockholders are require an 18% rate of return, Kidron’s cost of capital is: a. 13.5% b. 14.8% c. 16.0% d. 18.0% e. 18.5% 22. The balance sheet for The Pie Company reveals net liabilities growing slowly over four years but the company claims that they have not obtained any new debt. The Pie Company likely: a. Has off balance

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