If there are no current assets or liabilities associated with operating expenses,the amounts we report for these expenses in the income statement must equal the amount of cash we paid for these items.

Question

Quizplus · Accepted Answer

This statement is true because operating expenses are typically paid in cash and do not involve the acquisition of assets or the incurrence of liabilities. Therefore, the amount we report for operating expenses in the income statement should equal the amount of cash we paid for these expenses.

If There Are No Current Assets or Liabilities Associated with Operating