Question
Colorado Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: Colorado Company
Colorado Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet:
| Colorado Company |
| Comparative Balance Sheet |
| December 31, 2025 and 2024 |
| 2025 | 2024 | 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?
| as an addition to investing cash flows | ||
| as a deduction from operating cash flows | ||
| as an addition to Net Income | ||
| as a deduction from Net Income |
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Intermediate Accounting
Authors: Kin Lo, George Fisher
3rd Edition Vol. 1
133865940, 133865943, 978-7300071374
