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

question 47

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 Accrued Liabilities will be shown as a negative cash flow in the adjustments to Net Income.

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Definitions:

Population Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values across a whole population.

Sample Size

The number of participants or observations included in a sample, used in statistical analysis to make inferences about a larger population.

T-Distribution

A probability distribution that is used to estimate population parameters when the sample size is small and the population standard deviation is unknown.

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1, used as a basis for comparing other normal distributions.