What is the total amount of expenses for the company if it pays $50,000 during the year and accrues $5,000 at year end?

To determine the total amount of expenses for the company, you need to consider both the cash payments made during the year and any expenses that have been incurred but not yet paid (accrued expenses).

In this scenario, the company has paid $50,000 in cash, which represents the expenses it has settled during the year. Additionally, the company has accrued $5,000 worth of expenses at year-end. These accrued expenses indicate costs that have been incurred but have not yet been settled in cash.

To find the total expenses, you simply add the cash payments to the accrued expenses: $50,000 + $5,000 = $55,000.

This total accounts for all the expenses the company has recognized during the year, both those that are paid out of pocket and those that are accounted for but still to be paid. Thus, the answer of $55,000 accurately reflects the company’s total expenses for the year.