37 38 Multiple Choice Questions (5 marks) - Type X as your answer against the choice selected. 39 1. Ten years ago you borrowed $300,000. The term of the loan was 20 years and required monthly payments of $3,303.26. The interest rate on the loan 40 was 12 percent compounded monthly. You have just made the 120th payment. What is the principal outstanding? 41 A. S212,583 42 B. $230,239 43 C. $191,866 44 DS150,000 45 46 2. Which of the following descriptions about near-cash is falso? 47 A low returns 48 B great liquidity 49 C.mmmal additional risk 50 D. No credit risk 51 52 3. The following information is available for Chap Company Sales $350.000 54 Cost of goods sold 120.000 55 Total fixed expenses 60,000 56 Total variable expenses 100.000 57 Which amount would you find ou Chap' CVP income statement? 58 A Coutribution margin of S250,000 59 B. Contribution matin of S190,000 60 C Grow profit of $230,000 61 D. Gross profit of $190,000 634. Which of the following statements is correct? 64 A. The future value of a perpetuity cannot be computed. 65 B. The future value of a perpetuity can be computed. 65 C. The present value of a perpetuity camiot be computed 67 D. The present value of an annuity cannot be computed 69 S. The period of time between the sale of finished goods on credit and the collection of the cash is called the TO A Collection period 71 B luvutory period 72 Operating cycle. 73 D. Net financing period