64. The charge made to the current operations for the portion of cost of long-lived assets consumed during the current period is called _________________. Answers: a. accumulated depreciation b. rent expense c. indirect labor d. depreciation 65. Stocks and bonds that can be readily converted into cash are called _____________. Answers: a. Current Assets b. Current Liabilities c. Marketable Securities d. Treasury Stock 66. Which of the following is a permanent account? Answers: a. Accumulated Depreciation b. Advances from Customers c. Both a and b d. Neither a nor b 67. In preparing its year-end adjusting entries, XYZ Company neglected to adjust prepaid insurance for the amount of insurance expired during Year 1. Which of the following reflects the result of this error? Answers: a. Year 1 net income is understated, the balance in retained earnings is understated, and assets are understated. b. Year 1 net income is overstated, the balance in retained earnings is overstated, and assets are correctly stated. c. Year 1 net income is overstated, the balance in retained earnings is overstated, and assets are overstated. d. None of the above 68. Goods on hand that have been purchased for resale are called ______________. Answers: a. cash b. COGS c. assets d. inventory