During the Year, Engine Engineering Corporation Has Operating Expenses of $30,000

question 80

Multiple Choice

During the year, Engine Engineering Corporation has operating expenses of $30,000. There was an increase in prepaid expenses of $5,000 and an increase in accrued liabilities of $7,000. What were Engine's cash payments for operating expenses?

• A) $42,000
• B) $32,000
• C) $28,000
• D) $18,000

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Definitions:

Referent Power

Referent power is a form of personal power that stems from being admired, respected, and liked by others, often leading to influence through the desire of others to be associated with the person.

Legitimate Power

The authority that a person or a position holds, which is recognized as rightful by those they govern or lead, often derived from official or formal roles.

Expert Power

The influence and authority one possesses as a result of one's experience, skills, or knowledge in a specific area.

Reward Power

The capacity to influence others' behavior by offering them positive incentives.