Operating Expenses-Other Than Depreciation-For the Year Were $280,000

question 6

Multiple Choice

Operating expenses-other than depreciation-for the year were $280,000.Prepaid expenses increased by $16,000.Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:

• A)$296,000.
• B)$16,000.
• C)$264,000.
• D)$280.000.

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Definitions:

Average Total Cost

The sum of fixed and variable production costs, divided by the total amount of goods produced.

Industry's Price

The general price level at which goods and services are bought and sold within a specific industry.

Output

The total amount of goods and services produced by a company, industry, or economy.

Marginal Revenue Curve

A graphical representation that shows how marginal revenue varies with changes in the quantity of output sold.