If the opening balance of accrued expenses is $34 000,the closing balance is $38 000 and accrued expenses recognised at the end of the period is $20 000,how much was paid for accrued expenses during the period?
A) $14 000
B) $16 000
C) $18 000
D) $28 000

Question

Quizplus · Accepted Answer

The formula for calculating the amount paid for accrued expenses during the period is:
Amount paid = Closing balance - Opening balance - Expenses recognised
Substituting the values given in the question,
Amount paid = $38 000 - $34 000 - $20 000
Amount paid = $4 000 - $20 000
Amount paid = -$16 000 (negative value indicates that expenses were not paid)
However, the question asks for the amount paid, so we need to take the absolute value of -$16 000 which is $16 000. Therefore, the answer is B) $16 000.

If the Opening Balance of Accrued Expenses Is $34 000,the