Financial Accounting Final Exam Study Guide free essay sample

Final Examination Study Guide revised fall 2010 Disclaimer: The Study Guide is intended to provide direction in preparing for the final. It is not intended to be an all inclusive list of everything contained on the final. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statements is true? A) Treasury stock causes issued shares to exceed outstanding shares. Stanley Corporation uses the effective interest rate method of amortization. Interest is paid each June 30 and December 31. The interest expense recognized for the first semiannual interest payment on December 31 is: A) $9,000. B) $81,900. C) $180,000. D) $75,000. 40) Thunder Corporation had a beginning balance in net plant assets of $220,000. During the year, Thunder purchased $60,000 of new plant assets. Depreciation expense for the year was $30,000 and there was a net gain on the sale of plant assets was $3,000. The ending balance in net plant assets was $170,000.