16.XYZ Co. uses the accrual basis of accounting. The company's Insurance Expense account had a 0,000 balance at the end of the year. The Prepaid Insurance account had a $3,000 balance at the beginning of the year and a $5,000 balance at the end of the year. How much cash was paid for insurance during the year? a. $8,000 b. $10,000 c. $12.000 d. $15,000 17. Manhattan Company made $500,000 in payments to its suppliers during the year. Manhattan's beginning Inventory was $20,000, and its ending Inventory was $35,000. In addition, Manhattan had a beginning Accounts Payable of $50,000 and an ending Accounts Payable of $70,000. What is Manhattan's Cost of Goods Sold under the accrual basis of accounting? a. $465,000 b. $495,000 c. $505,000 d. $535,000 18. Which is not a an The resource must be useful only in the entity's activities and have been acquired by purchase, production, or stockholder investment. The entity must be able to obtain the future benefit and control others' access to it. a. b. c. The transaction or event giving rise to the entity's right to or control over the benefit must have already occurred. The resource must singly, or in combination with other resources, have the capacity to contribute directly, or indirectly, to the entity's future net cash inflows. d. 19.Current assets are cash or other assets that are reasonably expected to be converted into cash, sold, or consumed within one year or a normal operating cycle. An operating cycle is defined as the company's ability to: b) d. spend cash in the generation of services which can result in an increase in Revenue a. that intangible assets have no physical existence and other assets are deferred b. spend cash to payoff the company's liabilities. spend cash to acquire inventory which is sold and returned to cash. spend cash to acquire inventory which is sold to customers in the normal course of business. and Net Income form Operations. 20.Justification for having both Intangible Assets and Other Assets listed on a Balance Sheet include: charges. that having more items listed on the Balance Sheet improves the users understanding of the company that the intangible assets are more important than the tangible assets. the other asset classification is important because Goodwill cannot be amortized, so it needs to be recorded on the Balance Sheet. c. d. 21.Which statement is true? a. b. c. d. Stock must have either a par or stated value. If nominal, par value does not need to be disclosed on the bal In most Par value does not suggest current fair value. ance t states, stock may be issued at more or less than par value