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

Question

Quizplus · Accepted Answer

The cash paid for expenses can be calculated by starting with the expenses incurred on account ($13,500), adding the beginning accounts payable balance ($1,500), and then subtracting the ending accounts payable balance ($3,500). This results in $11,500 ($13,500 + $1,500 - $3,500).

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