Nelson Corp The Change in Accounts Payable Is as a Negative Cash

question 96

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:
$\begin{array}{c}\text {Nelson Corp.}\\\text {Comparative Balance Sheet}\\\text {December 31, 2017 and 2016}\\\begin{array}{|l|r|r|r|}\hline& 2017 & 2016 & \text { Increase/(Decrease) } \\ \hline\text { Accounts Payable } & \$ 8,000 & \$ 9,000 & \$(1,000) \\\hline \text { Accrued Liabilities } & 3,000 & 1,500 & 1,500 \\\hline \text { Long-term Notes Payable } & \underline{56,00} & \underline{60,000} & \underline{(4,000)} \\\hline \text { Total Liabilities } & \$ 67,00 & \$ 70,500 & \$(3,500) \\\hline\end{array}\end{array}$ The change in Accounts Payable is as a negative cash flow in the adjustments to net income.

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Definitions:

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Self-Fulfilling Prophecy

A belief or expectation that influences actions in a way that causes the belief to become a reality.

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The tendency for observers to make judgments or assumptions about others' traits or characteristics, often based on limited information.