Nelson Corp uses the indirect method to prepare the statement of cash flows
Refer to the following section of the comparative balance sheet:
Nelson Corp
Comparative Balance Sheet
December 31, 2017 and 2016
2017 2016 Increase/(Decrease)
Accounts Payable $8,000 $9,000 $(1,000 )
Accrued Liabilities 3,000 1,500 1,500
Long-term Notes Payable 56,000 60,000 (4,000 )
Total Liabilities $67,000 $70,500 $(3,500 )
The change in Accounts Payable is as a negative cash flow in the adjustments to net income.
Indicate whether the statement is true or false
TRUE
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The current indirect exchange rate is 0.652 GBP per USD. The anticipated annual inflation rate is 4% in the United States and 2% in the UK
If the cash inflow in pounds is 40,000 in one year, what are the 50,000 GBP worth in U.S. dollars after conversion from pounds to dollars using the forward exchange rate? A) $63,480.78 B) $63,874.27 C) $62,552.63 D) $63,983.78
The tendency to agree to an answer or choice based on an attempt to avoid conflict represents the overconfidence bias
Indicate whether the statement is true or false.