Francis Company had operating expenses of $20,000 and depreciation expenses of $4,000.Assuming no other transactions,what was the cash paid for operating expenses?
A)$24,000
B)$22,000
C)$16,000
D)$20,400
E)$23,000

Question

Quizplus · Accepted Answer

Depreciation expenses are non-cash expenses, which means no cash was actually paid for it. Therefore, the cash paid for operating expenses would be equal to the total operating expenses, which is $20,000. So the correct answer is option C, $16,000.

Francis Company Had Operating Expenses of $20,000 and Depreciation Expenses