ACCT 301A (ACCT301A)
California State University - Fullerton
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California State University, Fullerton: ACCT 301A | ACCT301A Review Midterm Exam (Answered Summer 2025/2026)
- Exam (elaborations) • 46 pages • 2025
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ACCT 301A 
CHAPTER 5 
1. Which of the following has an impact on the dollar amount of the 
interest related to any financing transaction? 
a. Principal 
b. Interest rate 
c. Time 
d. All of these 
2. The larger the amount of principal, the larger the dollar amount of 
interest 
a. True [and/or a longer time period] 
b. False 
3. All things being equal, if a company borrows money it prefers to pay 
simple interest 
a. True [borrowers would prefer to pay simple interest is computed 
on the princip...
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