Study Guide for Final Examination

This study guide prepares you for the Final Examination you complete in the last week of the course. It contains practice questions, which are related to each week’s objectives. Highlight the correct response, and then refer to the answer key at the end of this Study Guide to check your answers.

5. What command would tell the system at which runlevels to start analyzed? Pg 430

This study guide will prepare you for the Final Examination you will complete in Week Five. It contains practice questions, which are related to each week’s objectives. In addition, refer to each week’s readings and your student guide as study references for the Final Examination.

5. (TCO B) You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you received for the car assuming an interest rate of 6.0%?

use. It has an estimated useful life of 20 years, though it is being financed over a 15

This study guide will prepare you for the Final Examination you will complete in Week Six. It contains practice questions, which are related to each week’s objectives. In addition, refer to each week’s readings and your student guide as study references for the Final Examination.

Anything that is in the readings or that we covered in class is fair game for the exam. This should give you a general idea of where you may want to focus your study.

39) Several years ago, Durham City issued $1 million in zero coupon bonds due and payable in 2010. The bonds were sold at an amount to yield investors 6% over the life of the bonds. During the current year, how much interest expenditures would Durham City recognize related to these bonds?

The 8.5 percent annual coupon bonds of the ABC Co. are selling for $1,179. The bonds mature in 12 years. The bonds have a par value of $1,000. If the tax rate is 30%, what is the after-tax cost of debt?

Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow.

Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow.

The Sarbonnes-Oxley Act (SOX) requires companies to accurately report the value of all assets including accounts receivables. A big part of accurately representing the value of accounts receivable is to account for the bad debts that may not be collected. According to Generally Accepted Accounting Principles (GAAP), bad debts must be recognized as an expense in the same period as the revenue is recognized (Narayanan). Using the direct write-off method to account for bad debt does not comply with this standard. Two allowance methods that do comply with SOX and GAAP requirements include the percentage of receivables and the percentage of sales method—both providing benefits to the company beyond just meeting regulations.

13. Other things being equal, the more frequent the compounding period, the: A. higher the APR. B. lower the APR. C. higher the effective annual interest rate. D. lower the effective annual interest rate

  Carrying  amount  190,000  200,000  190,000  200,000  200,000  Less Assessable  Amount  190,000 200,000 0  0  0 Add Deductible  Amount  10,000 10,000 10,000  0  10,000 Equals  Tax   Base  10,000  10,000  200,000  200,000  210,000

As you read this week’s required materials, complete this study guide. Review the material to study for the final examination in Week Five. This is a multipage assignment: double-check that you have completed each page before submitting.