Operating Expenses Other Than Depreciation for the Year Were $563,000

question 35

Multiple Choice

Operating expenses other than depreciation for the year were $563,000.Accrued expenses decreased by $47,000.Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:

• A)$47,000.
• B)$516,000.
• C)$563,000.
• D)$610,000.

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Definitions:

Flexible Budget

A budget that is conceived to flex with variations in activity scale or volume.

Selling

The process involved in promoting and transferring ownership of a product or service to a customer in exchange for payment.

Administrative Expense

Costs associated with the general administration of a business, including salaries of non-sales personnel, office supplies, and rent, not directly tied to production or sales.

Tenant-Days

A metric used in property management, representing the total number of days that tenants occupy a space within a specific period.