Question
Rory Co.'s prepaid insurance was $50,000 at December 31, 20X5 and $25,000 at December 31, 20X4. Insurance expense was $20,000 for 20X5 and $15,000 for
Rory Co.'s prepaid insurance was $50,000 at December 31, 20X5 and $25,000 at December 31, 20X4. Insurance expense was $20,000 for 20X5 and $15,000 for 20X4. What amount of cash disbursements for insurance should be reported in Rory's 2005 net cash flows from operating activities presented on a direct basis?
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Auditing Essentials
Authors: Frank C Giove
1st Edition
0738671509, 9780738671505
