Operating Expenses Other Than Depreciation for the Year Were $400,000

question 61

Multiple Choice

Operating expenses other than depreciation for the year were $400,000. Prepaid expenses increased by $17,000 and accrued expenses decreased by $30,000 during the year. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be

• A) $353,000
• B) $413,000
• C) $447,000
• D) $383,000

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Definitions:

Adverse Effects

Unintended, harmful outcomes or side effects resulting from medication or treatments.

Poisoning

The condition of becoming ill or experiencing harmful effects because of substances that are toxic or dangerous when ingested, inhaled, or come into contact with the body.

Underdosing

The administration of a drug or medication in quantities less than the recommended dose.

Leaking Heart Valve

A condition where one or more of the heart valves do not close properly, leading to blood leaking backwards.