The Following Information Was Reported by a Catering Company What Amount Would Be Reported in the Operating Activities Section

question 149

Multiple Choice

The following information was reported by a catering company: $\begin{array}{ll}\text { Accrued liabilities, December 31, 2014 } &\$ 92,000 \\\text { Accrued liabilities, December 31, 2013 } &55,000 \\\text { Operating expenses for 2014 } &200,000\end{array}$ What amount would be reported in the operating activities section of the statement of cash flows for Payments for Operating Expenses under the direct method?

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

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Definitions:

Market Value

The present rate at which a service or asset may be purchased or sold in the market.

Accounting Records

Documents and books that keep systematic financial data and transactions of a person, company, or entity.

Ethical Lapses

Instances where individuals or organizations fail to act in accordance with their moral or ethical standards.

Civil Prosecution

A legal process initiated by a private party, rather than the state, to seek remedy for a wrong that is believed to have been done to them.