At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted (i.e., the entry was not made). Which of the following statements is true?

a. Net income will be understated (too low) for the current year.

b. Total liabilities and total assets will be overstated (too high).

c. The Balance Sheet and Income Statement will be misstated but the Statement of Retained Earnings will be correct for the current year.

d. Total assets will be overstated (too high) at the end of the current year.

Which of the following is NOT true?

Group of answer choices

Compared to this year, a discount bond’s price will increase next year, everything else equal.

Compared to this year, a premium bond’s price will decrease next year, everything else equal.

Compared to this year, a par bond’s price will remain constant next year, everything else equal.

Compared to this year, a premium bond’s price will increase next year, everything else equal.

A stock is expected to pay a year-end dividend of $8 and then to sell at a price of $109. The risk-free interest rate is 4%, the expected market return is 12% and the stock has a beta of 0.8. What is the stock price today?

Multiple Choice

$102.99.

$98.73.

$105.98.

$109.00.

The current price of a stock is $22, and at the end of one year its price will be either $29 or $15. The annual risk-free rate is 5.0%, based on daily compounding. A 1-year call option on the stock, with an exercise price of $21, is available. Based on the binominal model, what is the option's value?

An investment will pay $16,100 at the end of each year for eight years and a one-time payment of $161,000 at the end of the eighth year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

Determine the present value of this investment using a 6% annual interest rate. (Round your answer to the nearest whole dollar.)

Suppose you deposit $500 in an account at the end of this year, $400 at the end of next yer, and $300 at the end of the following year. The interest rate is 7.5%. How much will be in the account immediately after the third deposit is made? How much will be in the account at the end of three years if the deposits are made at the beginning of each year? Please show work and proper equation to use.

It is the end of the financial year and your client is XYZ company. From the following file note summary prepare an evaluation report.

File note summary XYZ company. Financial potential $33,000 annually for the previous three years. Accumulated surplus $100,000. Statutory requirements: prepare and lodge BAS and IT. Compilation assurance. Reports provided by XYZ’s CEO. Preference to invest in government bonds. No contingency cash expected.

The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For these questions, assume these values are not changing from year to year, and that the population of the United States is 312 million people.

a) What is the probability that an American chosen at random died as a passenger car occupant last year?

b) What is the probability that you died as a passenger car occupant last year?

  d) What is the probability that an American chosen at random will die as the result of a tornado next year?

g) People sometimes claim skydiving is less dangerous than driving or riding in a car. Does the data support this claim? Explain.

h) People sometimes claim motorcycle riding is less dangerous than traveling by car. Does the data support this claim? What additional information and/or calculations would be useful to evaluate this claim?

Give your answer as a fraction or decimal. If decimal, make sure your answer is accurate to at least 2 significant figures (values after leading zeros)

Suppose the following are the seasonal indices for the first three quarters of the year for a quarterly series:

Remember that the seasonal indices should average 100 so you should be able to infer the seasonal index for Q4.


Furthermore, suppose that the estimated coeffcients from a regression of the deseasonalized series on Time are given below:

What is the trend projection of the series for period 43? (please round your answer to 1 decimal place)

5 points

Question 28

Suppose the following are the seasonal indices for the first three quarters of the year for a quarterly series:

Remember that the seasonal indices should average 100 so you should be able to infer the seasonal index for Q4.


Furthermore, suppose that the estimated coeffcients from a regression of the deseasonalized series on Time are given below:

What is the forecast for period 111, if period 111 is a Q1? (please round your answer to 1 decimal place)