ACCT 2300 Exam 5 Mistrot questions
n answers 2025/2026 latest update
You have been awarded a scholarship that will pay you $300 per semester at the end of each of
the next 8 semesters that you earn a GPA of 3.5 or better. You are a very serious student and
you anticipate receiving the scholarship every semester. Using a discount rate of 5% per
semester, which of the following is the correct calculation for determining the present value of
the scholarship? - ANS ✔✔PV = $300 × (Annuity PV factor, i = 5%, n = 8)
The principal amount, the interest rate, and the number of periods are all factors needed to
calculate the time value of money. - ANS ✔✔True
Casey issued bonds for $30,000 at face value on July 1. 14% interest payments are due January
1 and July 1. What is the adjusting entry on December 31? - ANS ✔✔Bond Interest Expense
2,100 Bond Interest Payable 2,100
Bonds that may be retired at a prearranged price are called: - ANS ✔✔callable bonds.
Assuming an interest rate of 8%, the present value of $30,000 to be received 6 years from now
would be closest to: (0.630/4.623) - ANS ✔✔$18,900
Assuming an interest rate of 12%, the present value of $8000 received at the end of each year
for 8 years would be closest to: (0.404/4.968) - ANS ✔✔$39,744.
Tanko Financing leases phones to various companies for business use. Tanko has just signed a 2-
year lease agreement that requires annual year-end lease payments of $340,000. The present
value of $1 for 2 periods at 5% is 0.907. The present value of an ordinary annuity of $1 for 2
periods at 5% is 1.859. What is the present value of the lease when the lease commences using
a 5% interest rate? - ANS ✔✔$632,060
n answers 2025/2026 latest update
You have been awarded a scholarship that will pay you $300 per semester at the end of each of
the next 8 semesters that you earn a GPA of 3.5 or better. You are a very serious student and
you anticipate receiving the scholarship every semester. Using a discount rate of 5% per
semester, which of the following is the correct calculation for determining the present value of
the scholarship? - ANS ✔✔PV = $300 × (Annuity PV factor, i = 5%, n = 8)
The principal amount, the interest rate, and the number of periods are all factors needed to
calculate the time value of money. - ANS ✔✔True
Casey issued bonds for $30,000 at face value on July 1. 14% interest payments are due January
1 and July 1. What is the adjusting entry on December 31? - ANS ✔✔Bond Interest Expense
2,100 Bond Interest Payable 2,100
Bonds that may be retired at a prearranged price are called: - ANS ✔✔callable bonds.
Assuming an interest rate of 8%, the present value of $30,000 to be received 6 years from now
would be closest to: (0.630/4.623) - ANS ✔✔$18,900
Assuming an interest rate of 12%, the present value of $8000 received at the end of each year
for 8 years would be closest to: (0.404/4.968) - ANS ✔✔$39,744.
Tanko Financing leases phones to various companies for business use. Tanko has just signed a 2-
year lease agreement that requires annual year-end lease payments of $340,000. The present
value of $1 for 2 periods at 5% is 0.907. The present value of an ordinary annuity of $1 for 2
periods at 5% is 1.859. What is the present value of the lease when the lease commences using
a 5% interest rate? - ANS ✔✔$632,060
