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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Imaginative Thinking Skills

The ability to think creatively and innovatively, envisioning possibilities beyond traditional or obvious solutions.

Creative

Characterized by originality of thought or expression; having the ability or power to create new ideas, things, or solutions.

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A thought process or method used to generate creative ideas by exploring many possible solutions, emphasizing quantity over quality.

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Utensils made from silver or other metals used for eating and serving food.