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PE 2 - Fall 2006.doc

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Department
Economics
Course
ECO1192
Professor
All Professors
Semester
Fall

Description
We didENGINEERING ECONOMICSECO 1192BSecond Partial ExaminationCThoretWinter 2006Please Note1You have 80 minutes 7 pm to 815 pm to complete Partial Examination 2 which consists of 30 multiple choice questions2Questionnaires and answer sheets are colour codedEnsure that your copies have matching colours3All questions must be answered on the Scantron sheet4Please indicate your name student number and course number on the front of the Scantron sheetFailure to provide this information could result in the cancellation of your examination5Correct answers are worth one 1 point and incorrect answers zero 06You may keep the examination questionnaire7You MUST show your University of Ottawa ID card as you handin the answer sheet AND sign the attendance sheet8Thank you1The halfyear rule was introduced by the Government of Canada in 1981 toa provide incentives to businesses for the purchase of more physical assetsb alleviate the income tax burden of businesses with significant income from operationsc minimize the income tax advantage arising from the purchase of physical assetsd None of the above answers2A capital physical assets annual accounting depreciation is defined as a its current market value less its total depreciation b its purchase price less its total depreciation1PageEngineering EconomicsECO 1192B Page 1Second Partial Examination White March 14 2006 c its market value at the beginning of the year less its market value at the end of the year d None of the above answers3The two major perspectives on the replacement of physical assets area Insider and cash flowb Insider and ownerc Insider and consultantd Outsider and consultant INFORMATION FOR QUESTIONS 4 to 8 Balance Sheet for XYZ Companyat December 31 2005ASSETSCurrent AssetsCash60000Accounts Receivable35000Raw Materials Inventory10000Finished Goods Inventory30000Total Current Assets135000Long Term AssetsEquipment100000Accumulated depreciation20000Buildings200000Accumulated depreciation100000Land100000Total Long Term Assets2800002PageEngineering EconomicsECO 1192B Page 2Second Partial Examination White March 14 2006
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