Francis Company Had Operating Expenses of $20,000 and Depreciation Expenses

question 19

Multiple Choice

Francis Company had operating expenses of $20,000 and depreciation expenses of $4,000.Assuming no other transactions,what was the cash paid for operating expenses?

• A)$24,000
• B)$22,000
• C)$16,000
• D)$20,400
• E)$23,000

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Definitions:

Aluminum Ore Reserves

Refers to the total amount of aluminum ore available for mining in a specific area or globally, which is crucial for industrial production.

Price-Taking Assumption

The assumption that individual firms or consumers do not have the power to influence market prices due to their small size relative to the market.

Free Entry Assumption

The free entry assumption posits that in a competitive market, new firms are free to enter the market and compete without facing significant barriers.

Perfect Information

A scenario in which all participants have access to all relevant information for decision-making.