Wireless Technologies Reports Operating Expenses of $2 Million

question 68

Multiple Choice

Wireless Technologies reports operating expenses of $2 million.Operating expenses include rent expense.Prepaid rent at the beginning and end of the year are $20,000 and $70,000,respectively.All other operating expenses were paid in cash as incurred.What is the amount of cash paid for operating expenses?

• A)$2,000,000.
• B)$2,070,000.
• C)$1,950,000.
• D)$2,050,000.

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Definitions:

Constant Rate

The steady, unchanging rate at which a quantity such as interest, growth, or decay progresses over time.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, expressing the dividend as a percentage of the current share price.

Dividend Yield

A financial measure that represents the yearly dividend payout by a company compared to its stock price.

Expected Growth Rate

This is the rate at which a company, economy, or investment is anticipated to grow at an average annual rate over a specified period.