On December 31, Year 1, the Prepaid Insurance account decreased by $4,000 as a result of the recognition of insurance expense in an adjusting entry. 
What will be an ideal response?
(D) (NA) (NA) (NA)
Insurance expense decreases net income, but does not affect cash flows. There was no cash payment to purchase insurance and thus there is no cash outflow reported in the operating activities section of the statement of cash flows.
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When hardcopy forms are used as the source for electronic data input,
a. a paper audit trail is maintained b. economies of scale in data collection are avoided c. input errors are reduced d. a point-of-sale terminal is required
Buyers often attempt to combine as many orders as possible with the same vendor by using blanket orders or annual agreements.
Answer the following statement true (T) or false (F)
One of the basic elements of zoning is the classification of land by permissible use as part of a comprehensive municipal plan
Indicate whether the statement is true or false
Brown Inc needs to borrow $250,000 for the next 6 months. The company has a line of credit with a
bank that allows the company to borrow funds with an 8% interest rate subject to a 20% of loan compensating balance. Currently, Brown Inc has no funds on deposit with the bank and will need the loan to cover the compensating balance as well as their other financing needs. What is the annual percentage rate for this financing assuming discounted interest? A) 14.29% B) 11.67% C) 10.53% D) 12.98%