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
You might also like to view...
The employee wage and tax statement is known as a(n) ______________________________
Fill in the blank(s) with correct word
Improvements made to a leased property should be capitalized over the life of the lease or the life of the assets whichever is shorter
Indicate whether the statement is true or false
Data on the growth of online business transactions over a five-year period would best be shown in a line chart
Indicate whether the statement is true or false
Trusts are much more difficult to challenge in court than are wills which is what makes them more attractive
Indicate whether this statement is true or false.