California Corp The Change in Accrued Liabilities Is Shown as a Negative

question 18

True/False

California Corp.uses the indirect method to prepare the statement of cash flows.Refer to the following section of the comparative balance sheet:
$\begin{array}{c}\text { California Corp.}\\\text { Comparative Balance Sheet}\\\text { December 31,2018 and 2017}\\\begin{array}{|l|r|r|r|}\hline&2018&2017&\text { Increase/(Decrease) }\\\hline \text { Accounts Payable } & \$ 8,000 & \$ 9,000 & \$(1,000 \\\hline \text { Accrued Liabilities } & 3,000 & 1,500 & 1,500 \\\hline \text { Long-term Notes Payable } & \underline{56,000} & \underline{60,000} & \underline{(4,000} \\\hline \text { Total Liabilities } & \$ 67,000 & \$ 70,500 & \$(3,500) \\\hline \end{array}\end{array}$

The change in Accrued Liabilities is shown as a negative cash flow in the adjustments to net income.

Describe the composition of shareholders' equity and its components.

Differentiate between various types of shares and their characteristics.

Calculate and interpret key financial ratios including earnings per share and price-earnings ratio.

Understand the stages of team development and characteristics of each phase.

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Definitions:

Punish Wrongdoers

The act of imposing a penalty on individuals or entities found to have violated laws or rules.

Contractual Promises

A commitment or guarantee included within a contract that one or both parties agree to carry out.

Compensate Victim

The act of providing restitution or payment to a person who has suffered harm or loss as a result of another's action.

Breach Of Contract

The violation of any terms or conditions within a legally binding agreement.