A-Z Auto Parts Company uses the indirect method to prepare the statement of cash flows

Refer to the following section of the comparative balance sheet:

A-Z Company
Comparative Balance Sheet
December 31, 2017 and 2016
2017 2016 Increase/(Decrease)
Accounts Payable $4,000 $6,000 $(2,000 )
Accrued Liabilities 2,000 1,000 1,000
Long-term Notes Payable 84,000 90,000 (6,000 )
Total Liabilities $90,000 $97,000 $(7,000 )

How will the change in Accrued Liabilities be shown on the statement of cash flows?
A) as an addition to Net Income
B) as a deduction from Net Income
C) as a deduction from operating cash flows
D) as an addition to operating cash flows


Ans: A) as an addition to Net Income

Business

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