Davis Company Uses the Direct Method to Prepare Its Statement

question 59

Multiple Choice

Davis Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for the year 2014: Operating expenses, $26,000
Accrued Liabilities, beginning balance, $3,000
Accrued Liabilities, ending balance, $5,000
What amount was paid to suppliers for operating expenses on a cash basis?

• A)$29,000
• B)$28,000
• C)$24,000
• D)$31,000

---

Definitions:

Premenstrual Syndrome

A group of symptoms that occur in women, typically between ovulation and a period, including mood swings, tender breasts, food cravings, fatigue, irritability, and depression.

Pregnancy

The condition of having a developing embryo or fetus in the body, typically lasting about 40 weeks in humans.

Ovarian Cyst

A fluid-filled sac within the ovary, often benign and asymptomatic but can cause pain and other symptoms.

Cessation Of Menstruation

The permanent end of menstrual cycles, commonly known as menopause, which marks the end of a woman's reproductive years.