Operating Expenses Other Than Depreciation for the Year Were $400,000

question 53

Multiple Choice

Operating expenses other than depreciation for the year were $400,000.Accrued expenses increased by $35,000.Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:

• A)$435,000.
• B)$400,000.
• C)$365,000.
• D)$35,000.

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Definitions:

Procure Proceeds

The act of obtaining money or benefits as a result of conducting some activity, often related to business transactions.

Principal Revokes

The act of a principal canceling or withdrawing the authority previously granted to an agent, effectively terminating the agent's ability to act on behalf of the principal.

Obligation Tenders

Offers made to fulfill a duty or promise, particularly in a legal or financial context, such as repaying a debt.

Agency Termination

The process by which the relationship between an agent and their principal is ended.