Donnegan Company Reported Operating Expenses of $285,000 for 2011

question 85

Multiple Choice

Donnegan Company reported operating expenses of $285,000 for 2011.The following data were extracted from the company's financial records:

On a statement of cash flows for 2011, using the direct method, cash payments for operating expenses should be:

• A)$339,000.
• B)$321,000.
• C)$249,000.
• D)$231,000.

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Definitions:

Quality Control

Checks processes, materials, products and services to ensure that they meet high standards.

High Standards

The requirement or expectation for excellence and superior performance in a particular activity or field.

Internal Customers

Employees or departments within an organization that rely on other parts of the organization for products or services.

Results Of Others

The outcomes or outputs produced by individuals or groups other than oneself.