In Computing Cash Payments for Operating Expenses a Decrease in Prepaid

question 69

Short Answer

In computing cash payments for operating expenses a decrease in prepaid expenses is ______________ and an increase in accrued expenses payable is ______________ to (from) operating expenses exclusive of depreciation.

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Definitions:

Fiscal Year

A fiscal year is a 12-month period that an organization uses for accounting purposes and preparing financial statements.

Ledger Entries

Records of financial transactions within a company’s general ledger, detailing accounts affected and the amounts for each transaction.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby preparing the books for the next period.

Adjusted Trial Balance

A list of all the accounts and their balances after adjusting entries are made, used for preparing financial statements.