Ross CorpUses the Indirect Method to Prepare the Statement of Cash

question 3

True/False

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

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Definitions:

Peptidyl Transferase

An enzyme component of the ribosome that catalyzes the formation of peptide bonds between amino acids during the synthesis of proteins.

Peptide Bond

A peptide bond is a chemical bond formed between two amino acids when the carboxyl group of one reacts with the amino group of the other, releasing a molecule of water.

Elongation Stage

The phase during DNA transcription or protein synthesis where the nucleic acid or protein chain is extended by the addition of more units.

SnRNPs

Small nuclear ribonucleoproteins involved in the splicing of pre-mRNA in the nucleus.