Company D
the Following Information Was Reported by a Catering

question 180

Multiple Choice

Company D
The following information was reported by a catering company:
$\begin{array}{llr} \text { Accrued liabilities, December 31, Year 2 } &\$92,000\\ \text {Accued liablities, December 31, Year 1 } &55,000\\ \text { Operating expenses for Year 2} &200,000\end{array}$

-Refer to the figure Company D.Under the direct method,what amount would be reported in the operating activities section of Company D's statement of cash flows for payments for operating expenses?

• A) $163,000
• B) $200,000
• C) $237,000
• D) $292,000

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Definitions:

Usable Energy

Energy in a form that can be directly applied to perform work or be processed into a form suitable for human needs, such as electricity or mechanical power.

Energy Transformation

The process of converting energy from one form to another, such as kinetic energy to electrical energy, fundamental to various natural phenomena and technologies.

Low-Quality Heat

Thermal energy that is at a temperature unsuitable or inefficient for conversion into work or other high-value energy forms.

Physical Laws

Fundamental principles that describe and predict the conditions under which physical events occur, usually expressed in mathematical form.