Walker Corporation Reported Total Operating Expenses of $120,000 on the Income

question 73

Multiple Choice

Walker Corporation reported total operating expenses of $120,000 on the income statement.During the year,accounts payable increased by $7,000,accrued liabilities increased by $5,000,and prepaid expenses decreased by $1,000.Depreciation expense totaled $10,000.Walker uses the direct method to determine the net cash provided by operating activities on the statement of cash flows.What is the amount of operating expenses adjusted to a cash basis?

• A) $114,000
• B) $116,000
• C) $120,000
• D) $124,000

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Definitions:

Oligopolists

Firms or entities within an industry where a small number control the majority of the market share, often leading to limited competition.

Highest Profit

The maximum financial gain that can be achieved from business activities after subtracting all relevant costs and expenses.

Competitive Quantity

Indicates the amount of product or service offered by businesses in a competitive market scenario, aimed at achieving optimum market share.

Natural Monopoly

A market condition where a single firm can supply a good or service to an entire market at a lower cost than two or more firms.