Changes in Trade Payables and Accrued Liabilities Affect Cash Flows

question 92

True/False

Changes in trade payables and accrued liabilities affect cash flows from operating activities.

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Definitions:

Accounting Equation

A fundamental principle representing the relationship among assets, liabilities, and owner's equity (Assets = Liabilities + Owner's Equity).

Transactions

The exchange of goods, services, or funds between two or more parties in accounting, each recorded as an entry.

Inventory

The goods and materials that a business holds for the ultimate goal of resale or use in production.

Stockholders' Equity

The ownership share of shareholders in a corporation, calculated as the value of assets minus liabilities.