The Following Items Were Reported on the Balance Sheets and Income

question 112

Multiple Choice

The following items were reported on the balance sheets and income statement for Centerton Inc., a service company: $\begin{array}{lr}\text { Accounts payable, December 31, 2016 } & \$ 64,000 \\\text { Accounts payable, December 31, 2017 } & 48,000 \\\text { Operating expenses-2017 } & 170,000\end{array}$ What amount would be reported in the operating activities section of the statement of cash flows for payments for operating expenses under the direct method?

• A) $186,000
• B) $154,000
• C) $180,000
• D) $170,000

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Definitions:

Planning

The process of outlining organizational goals, strategies, and actions necessary to achieve those goals.

Semi-Fixed Marketing Cost

Costs associated with marketing that have both fixed and variable elements, changing with the level of output or sales to some degree, but not proportionately.

Marketing Research

The process of gathering, analyzing, and interpreting information about a market, product, or service.

Public Relations

The practice of managing and disseminating information from an individual or an organization to the public to influence their perception.