Question

Enterprises had operating expenses of $ 39 comma 000. At the beginning of the​ year, CD World Enterprises owed $ 11 comma 000 on accrued liabilities. At​ year's end, accrued liabilities were $ 17 comma 000. How much cash did CD World Enterprises pay for operating​ expenses?

Answer 1

$33,000

Step-by-step explanation:

The computation of the operating expenses paid is shown below:

= Operating expenses - increase in accrued liabilities

= $39,000 - $6,000

= $33,000

The increase in accrued liabilities would be

= Ending balance of accrued liabilities - beginning balance of accrued liabilities

= $17,000 - $11,000

= $6,000

The increase in accrued liabilities would be deducted whereas a decrease in accrued liabilities would be added