Nelson Corp $\quad$ $\quad$ $\quad$ $\quad$ $\quad$

question 103

True/False

Nelson Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet:
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Nelson Corp..
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Comparative Balance Sheet
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ December 31, 2014 and 2013
$\begin{array}{lrrr} & 2014 & 2013& \text { Increase/decrease } \\\text { Accounts Payable } & \$ 8,000 & \$ 9,000 & \$( 1,000) \\\text { Accrued Liabilities } & 3,000 & 1,500 & (1,500) \\\text { Long-Term Notes Payable } & (56,000) &60,000 & (4,000) \\ \text { Total liabilities} & \$67,000 &\$70,000 & \$(3,500) \\\hline\end{array}$ The change in Accounts Payable will be shown as a negative cash flow in the adjustments to Net Income.

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Definitions:

Oligopoly

An industry with just a few firms.

Perfect Competition

A market structure characterized by a large number of small firms, homogenous products, free entry and exit from the market, and full information availability, leading to no single firm influencing the market price.

Concentration Ratio

A metric used in economics to assess the degree of market concentration by measuring the market share of the largest firms within an industry.

Largest Firms

Companies that dominate their industries or markets, often characterized by significant revenue, global presence, and market influence.