a. I. C. Which of the following is NOT an adjusting entry? Prepaid rent b. Cash...

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a. I. C. Which of the following is NOT an adjusting entry? Prepaid rent b. Cash Rent expense Unearned revenue expense Interest payable Interest d. Salaries expense Salaries payable 2. Which of the following is NOT used in the computation of working capital (current assets-current liabilities)? a. Prepaid expense b. Unearned revenue Cash restricted for payment of a long-term notes payable d. Allowance for uncollectible accounts c. 3. On December 31, 2012, Coolwear, Inc. had a balance in its prepaid insurance account of $48,400. During 2013, $86,000 was paid for insurance. At the end of 2013, after adjusting entries were recorded, the balance in the prepaid insurance account was 42,000. Insurance expense for 2013 would be: a. $6,400 b. $134,400 c. $86,000 d. $92,400 4. The balance in retained earnings at the end of the year is determined by retained earnings at the beginning of the year: a. Plus revenues, minus liabilities b. Plus accruals, minus deferrals C. Plus net income, minus dividends d. Plus assets, minus liabilities. 5. Primecoat Corporation could disseminate its annual financial statements two days earlier if it shifted substantial human resources from other operations to the annual report project. Management decided the benefit of the earlier report was not worth the added cost. The concept demonstrated which of the following? a. Timeliness b. Relevance c. Materiality d. Cost-effectiveness constraint 6. The conceptual framework's qualitative characteristic of relevance includes: a. Predictive value. b. Verifiability. c. Completeness d. Neutrality a. I. C. Which of the following is NOT an adjusting entry? Prepaid rent b. Cash Rent expense Unearned revenue expense Interest payable Interest d. Salaries expense Salaries payable 2. Which of the following is NOT used in the computation of working capital (current assets-current liabilities)? a. Prepaid expense b. Unearned revenue Cash restricted for payment of a long-term notes payable d. Allowance for uncollectible accounts c. 3. On December 31, 2012, Coolwear, Inc. had a balance in its prepaid insurance account of $48,400. During 2013, $86,000 was paid for insurance. At the end of 2013, after adjusting entries were recorded, the balance in the prepaid insurance account was 42,000. Insurance expense for 2013 would be: a. $6,400 b. $134,400 c. $86,000 d. $92,400 4. The balance in retained earnings at the end of the year is determined by retained earnings at the beginning of the year: a. Plus revenues, minus liabilities b. Plus accruals, minus deferrals C. Plus net income, minus dividends d. Plus assets, minus liabilities. 5. Primecoat Corporation could disseminate its annual financial statements two days earlier if it shifted substantial human resources from other operations to the annual report project. Management decided the benefit of the earlier report was not worth the added cost. The concept demonstrated which of the following? a. Timeliness b. Relevance c. Materiality d. Cost-effectiveness constraint 6. The conceptual framework's qualitative characteristic of relevance includes: a. Predictive value. b. Verifiability. c. Completeness d. Neutrality

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