If 'other expenses' in the profit and loss report is $32,000 including $8,000 of depreciation,accrued 'other expenses' at the beginning of the year is $1,000 and $0 at the end of the year,the figure for 'other expenses' that will appear in the statement of cash flows for the year is:

Question

Quizplus · Accepted Answer

The cash flow statement reflects actual cash transactions. The 'other expenses' in the profit and loss report include non-cash depreciation of $8,000, so we subtract this from $32,000, resulting in $24,000. Since accrued expenses decreased by $1,000 (from $1,000 to $0), this means $1,000 was paid off, so we add this to the $24,000, resulting in $25,000.

If 'Other Expenses' in the Profit and Loss Report Is