Aaron Increported Operating Expenses During 2011 of $765,000 (Including $80,000 of of Depreciation

question 95

Multiple Choice

Aaron Inc.reported operating expenses during 2011 of $765,000 (including $80,000 of depreciation expense) .Prepaid expenses increased $25,000 while accrued liabilities increased $43,000.How much cash was paid for operating expenses during 2011?

• A)$702,000
• B)$622,000
• C)$667,000
• D)$703,000

---

Definitions:

Future Payments

Future payments refer to money that will be paid at a forthcoming date as a result of contractual obligations or anticipated transactions.

Interest Rate

The fraction of a loan that is assessed as interest for the borrower, often shown as a yearly percentage.

Interest Rate

The cost of borrowing money, expressed as a percentage of the amount borrowed.

Present Value

The current financial valuation of a sum of money due in the future or stream of income, based on a specific interest rate.