Accounting Exit Exam: Sample Questions & Solutions
On Jan 1, 2025, a company issues $100,000 face value bonds, 5-year term, 6% annual coupon (payable Dec 31). Market rate at issuance = 8%. PV factors:
- $10,000 × 4.21236 = $42,123.60 ≈ $42,124
✅ Correct answer: B
Total Revenue for January:
$9,000 + $2,160 + $150 = $11,310
Section B: Short Answer & Journal Entries
What is net cash from operating activities?
A company reports net income of $50,000. Depreciation expense = $8,000. Increase in accounts receivable = $3,000. Decrease in inventory = $4,000. Increase in accounts payable = $2,000.
Section 1: Financial Accounting
Step 1: Identify performance obligations (POs).
