3. The necessary adjustment(s) to the operating expenses amount shown on the inc

ID: 2655312 • Letter: 3

Question

3. The necessary adjustment(s) to the operating expenses amount shown on the income statement to arrive at cash paid for operating expenses is(are):

a. subtract the change in operating accruals

b.subtract depreciation expense

c. subtract the change in operating accruals and subtract depreciation expense

d. subtract the change in accounts payable and add the change in inventories

e. add the change in accounts payable and subtract the change in inventories

a. subtract the change in operating accruals

b.subtract depreciation expense

c. subtract the change in operating accruals and subtract depreciation expense

d. subtract the change in accounts payable and add the change in inventories

e. add the change in accounts payable and subtract the change in inventories

correct option is "C" -subtract the change in operating accruals and subtract depreciation expense.

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