Alleghany Community College Operates Four Departments Alleghany's Annual Building Rental Cost Is $320,000

question 66

Multiple Choice

Alleghany Community College operates four departments. The square footage used by each department is shown below. $\begin{array}{|l|r|}\hline{\text { De partment }} & \text { Square Footage } \\\hline \text { Accounting } & 3,000 \\\hline \text { Marketing } & 4,000 \\\hline \text { Technology } & 6,000 \\\hline \text { Sciences } & 3,000 \\\hline {\text { Total }} & \mathbf{1 6 , 0 0 0} \\\hline\end{array}$ Alleghany's annual building rental cost is $320,000.
What amount of rent expense that should be allocated to the Technology Department?

• A) $60,000
• B) $80,000
• C) $120,000
• D) $192,000

---

Definitions:

Dividends Payable

A liability on a company's balance sheet that represents the amount of dividends that have been declared but not yet paid to shareholders.

Cash Payments

Transactions in which money is paid out by a business, often for expenses, debts, or purchases.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to reveal net cash from operating activities.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activity into operating, investing, and financing activities.