A Company Reported an Increase in Prepaid Rent and an Increase

question 114

Multiple Choice

A company reported an increase in prepaid rent and an increase in accrued liabilities during 2010.Which of the following statements is correct?

• A)When determining cash paid for operating expenses, both the increase in prepaid rent and the increase in accrued liabilities are deducted from operating expenses.
• B)When determining cash paid for operating expenses, both the increase in prepaid rent and the increase in accrued liabilities are added to operating expenses.
• C)When determining cash paid for operating expenses, the increase in prepaid rent is added to operating expenses and the increase in accrued liabilities is deducted from operating expenses.
• D)When determining cash paid for operating expenses, the increase in prepaid rent is deducted from operating expenses and the increase in accrued liabilities is added to operating expenses.

Grasp the necessity of a comprehensive business setup including market and competitive analysis, along with startup costs.

Understand the ongoing relevance of traditional business metrics in the era of online business.

Realize the relationship between industry experience and business success.

Learn about the common structures of fast-growth companies and the role of partnerships.

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Definitions:

Keynesian Range

A segment of the aggregate supply curve where output can increase without an increase in price levels, related to Keynesian economics theories.

Full Capacity

The maximum level of output that a company can sustain over a period without increasing long-term costs, often achieved by optimizing the use of resources.

Equilibrium GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand within an economy.

Full Employment GDP

The output level of an economy when all available resources are employed efficiently, corresponding to a situation with no cyclical unemployment.