wer. Each question is worth 3 points. 1. Which of the following is an ingredient of relevance? a. Completeness b. Materiality c. Neutrality d. Free from error e. Periodicity 2. Allowing firms to estimate rather than physically count inventory at interim (quarterly) periods is an example of a trade-off between a. neutrality and consistency. b. faithful representation and comparability. c. verifiability and faithful representation. d. timeliness and verifiability. 3. One of the elements of financial statements is comprehensive income. As described in Statement of Financial Accounting Concepts No. 6, "Elements of Financial Statements," comprehensive income is equal to a. revenues minus expenses plus gains minus losses. b. revenues minus expenses plus gains minus losses plus investments by owners minus distributions to owners. c. revenues minus expenses plus gains minus losses plus investments by owners minus distributions to owners plus assets minus liabilities d. change in equity during the period, after adding distributions to owners and subtracting investments by owners. e. change in equity during the period, including those resulting from investments by owners and distributions to owners. 4. On December 31, 2018, Krug Company reported total liabilities of $95,000 prior to the following adjusting entries: Depreciation expense was $25,000; Accrued service revenues totaled $18,000; Accrued expenses totaled $16,000; Used up insurance worth $10,000, the insurance was prepaid; Rent revenue earned was $7,000; the rent was prepaid by the tenant. How much are Krug's total liabilities after adjusting entries? a. $88,000 b. $102,000 c. $104,000 d. $111,000 e. $118,000 1. $129,000