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WGU D103 PRE-ASSESSMENT: INTERMEDIATE ACCOUNTING I UNITS 5-7 (JMV1) (PJMV) QUESTIONS WITH ANSWERS UPDATE
Question : Which compound interest table is appropriate for
this situation?
a. Present value of an annuity due of 1 (4 periods, 8%)
b. Present value of an ordinary annuity of 1 (4 periods, 8%)
c. Present value of an ordinary annuity of 1 (16 periods, 2%)
d. Present value of an annuity due of 1 (16 periods, 2%)
Correct answer: d. 2%, 16 periods. (8% / 4 quarters) (4 years
x 4 quarters) Since the payments occur at the beginning of
each quarter, the annuity due factor is used to determine the
value of the payments.
Question : Which transaction should be included in this list?
a. Current notes receivable.
b. Investments in active markets.
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