If 'Other Expenses' in the Profit and Loss Report Is

question 10

Multiple Choice

If 'other expenses' in the profit and loss report is $32,000 including $8,000 of depreciation, and accrued 'other expenses' at the beginning of the year is $1,000 and 0 at the end of the year, the figure for 'other expenses' that will appear in the cash flow statement for the year is:

• A) $32,000
• B) $33,000
• C) $23,000
• D) $25,000

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Definitions:

Dual Effects Concept

The principle that every transaction has at least two effects on the financial statements - one that increases a category and another that decreases another category, maintaining the balance.

Transaction

An event or activity that impacts the financial position of a company, typically involving the exchange of goods, services, or money.

Relevant

Relevant, in a financial or accounting context, refers to information that is applicable and helpful for decision-making purposes.