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
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What are likely to cause resistance to change?
What will be an ideal response?
Which of the following is an example of a nonconventional pattern of cash flows?
A) Year 0 1 2 3 4 cash flow -200 150 310 265 200 B) Year 0 1 2 3 4 cash flow 200 100 -100 200 -300 C) Year 0 1 2 3 4 cash flow -200 100 100 200 300 D) Year 0 1 2 3 4 cash flow -200 150 150 150 150