Hogan Company Uses the Direct Method in Determining Net Cash

question 138

Multiple Choice

Hogan Company uses the direct method in determining net cash provided by operating activities During the year operating expenses were $295000 prepaid expenses increased $23000 and accrued expenses payable increased $33000. Cash payments for operating expenses were

• A) $39000.
• B) $51000.
• C) $305000.
• D) $285000.

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Definitions:

Paychecks

Regular payments made by an employer to an employee, representing salary or wages earned.

Drill-Down Feature

A functionality in software that allows users to view detailed data by clicking on a summary or aggregate data point.

Check Register

A record book or digital ledger used to keep track of all checks issued, deposits made, and current balance of a checking account.

Source Document

Original records that provide evidence of a financial transaction, such as invoices, receipts, contracts, or bank statements.