During the Month of March,Harley's Computer Services Made Purchases on Account

question 89

Multiple Choice

During the month of March,Harley's Computer Services made purchases on account totaling $43,500.Also during the month of March,Harley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance.If the balance in the accounts payable account at the beginning of March was $77,300,what is the balance in accounts payable at the end of March?

• A)$83,900.
• B)$91,900.
• C)$6,600.
• D)$75,900.
• E)$4,900.

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Definitions:

Indirect Method

A financial accounting technique used in cash flow statements to adjust net income for the effects of non-cash transactions.

Current GAAP

Generally Accepted Accounting Principles as they are presently defined and practiced in the United States for financial reporting.

Direct Method

A way of reporting cash flows from operating activities by showing major classes of gross cash receipts and payments.

Operating Activities

Operating activities involve the primary day-to-day functions of a business related to producing and selling its goods or services.