Pace Associates,a small consulting firm,charges all of its expenses on accounts payableAccounts Payable.On January 1,2014,Pace's accounts payableAccounts Payable balance was $1,500 at the beginning of the year.Duringand,during the year,an additional $13,500 of expenses were charged incurred on account in the amount of $13,500.The ending accounts payableAccounts Payable balance was $3,500.What is the amount of cash paid for expenses during the year2014?
A) $17,000
B) $11,500
C) $10,500
D) $15,500

Question

Quizplus · Accepted Answer

Beginning balance of Accounts Payable + Expenses incurred on account - Cash outflow for expenses = Ending balance of Accounts Payable
$1,500 + $13,500 - Cash outflow for expenses = $3,500
Cash outflow for expenses = $1,500 + $13,500 - $3,500 = $11,500

Pace Associates,a Small Consulting Firm,charges All of Its Expenses on Accounts