Concept Check Anwser Key

Chapter 1

1. A 2. C ($32,000 1 $15,000 2 $9,000 1 $50,000 2 $48,000) 3. B 4. B 5. B ($45,000 2 $35,000)

Chapter 2

1. C 2. B 3. D 4. B 5. A

Chapter 3

1. B 2. C 3. B 4. D 5. C

Chapter 4

1. B 2. C 3. B 4. D

Chapter 5

1. B 2. B 3. C 4. A ($400 for A 1 $600 for B) 5. A

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CONCEPT CHECK ANSWER KEY

Chapter 6

1. D ($120,000 1 $1000,000 1 $150 1 850) 2. A 3. C ($8,000 / 4 years 5 $2,000 per year; ($45,000 2 $5,000) / $2,000 5 20 years) 4. C (5 year life 5 20% per year; 20% 3 2 5 40%;

$60,000 3 40% 3 9/12 5 $18,000; ($60,000 – $18,000) 3 40% 5 $16,800) 5. B

Chapter 7

1. C 2. B 3. D 4. B ((40 hours 3 $28) 1 (5 hours 3 $42) 5 $1,330; ($55,000 2 $54,202) 3 0.06 5 $47.88;

$1,330 3 0.015 = $19.95; $1,330 2 $47.88 2 $19.95 2 $270 2 $30 5 $962.17) 5. C

Chapter 8

1. A 2. D 3. A 4. C (10,000 shares x $115 5 $1,150,000; $4,000,000 – $1,150,000 5 $2,850,000;

$2,850,000 / 100,000 shares 5 $28.50)

Chapter 9

1. D 2. A 3. D 4. C

Segment Profit Profit Margin on Sales Return on Assets

Airline $20 $20 / $4,000 5 0.5% $20 / $2,000 5 1%

Pencils 80 $80 / $1,000 5 8.0% $80 / $1,600 5 5%

Aluminum Siding 400 $400 / $2,000 5 20.0% $400 / $4,000 5 10%

5. B

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