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:

Net Capital Outflow

The imbalance between domestic individuals acquiring assets abroad and foreigners securing assets domestically.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a specified period of time.

Foreign-Currency Exchange

The system or process of converting one national currency into another and determining the exchange rates.

Government Budget Deficit

An economic condition occurring when government expenditures exceed its revenue in a fiscal period.