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Young & jamison's modified cash-basis financial statements indicate cash paid for operating expenses of $150,0.

Young & Jamison's modified cash-basis financial statements indicate cash paid for operating expenses of $150,0, end-of-year prepaid expenses of $15,0, and accrued liabilities of $25,0. At the beginning of the year, Young & Jamison had prepaid expenses of $10,0, while accrued liabilities were $5,0. If cash paid for operating expenses is converted to accrual-basis operating expenses, what would be the amount of operating expenses? a. $125,0 b. $135,0 c. $165,0 d. $175,0

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Question added by Mahmoud Mansour , المدير الاداري , نقابة المحاسبين والمدققين الفلسطينية
Date Posted: 2013/10/10
Mahmoud El-Naggar
by Mahmoud El-Naggar , Senior Auditor , Hassan El-Serafi & Shafiq Ahmed Chartered Accountants

Option c: is correct beginning balance of prepaid5 plus total operating expenses cash paid150 minus ending balance of prepaid expenses15 equal140 then we have to add accrued liabilities of25

Aun Muhammad
by Aun Muhammad , Manager Finance , Mawarid Exchange

C. $165

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