If the Opening Balance of Rent Accrued at the Beginning

question 31

Multiple Choice

If the opening balance of rent accrued at the beginning of the year was $1,000, rent expense for the year was $20,000 and the closing balance of rent accrued at the end of the year was $1,200, the amount paid in cash for rent during the year is:

• A)$22,200.
• B)$21,000.
• C)$20,200.
• D)$19,800.

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Definitions:

Cash-to-Cash Cycle

The time period between when a business pays cash to its suppliers for inventory and receives cash from its customers for goods or services sold.

Responsiveness

The ability of an organization or system to quickly and effectively adapt to changes or respond to customers.