On May 31,Don Company Had an Accounts Payable Balance of $57,000.During

question 43

Multiple Choice

On May 31,Don Company had an Accounts Payable balance of $57,000.During the month of June,total credits to Accounts Payable were $34,000,which resulted from purchases on credit.The June 30 Accounts Payable balance was $32,000.What was the amount of payments made during June?

• A) $32,000.
• B) $34,000.
• C) $57,000.
• D) $59,000.
• E) $84,000.

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Definitions:

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflow and outflow a company receives from its ongoing operations and external investment sources.

Operating Activities

Involves the day-to-day actions that are taken for the main operations of a business, such as sales and purchase of goods or services, which are reflected in the cash flow from operating activities in the financial statements.

Comparative Balance Sheet

A financial statement that presents the balances of assets, liabilities, and stockholders' equity at two or more different points in time to analyze trends or changes.

Indirect Method

A method for preparing the cash flow statement that starts with net income and adjusts for non-cash transactions.