Lightning Electric Company Uses the Direct Method to Prepare Its

question 174

True/False

Lightning Electric Company uses the direct method to prepare its statement of cash flows.Lightning has reported operating expenses of $63,000 on its income statement for the year 2019.If the balance in accrued liabilities has increased by $6,000 during the year,then $6,000 needs to be added to $63,000 to calculate payments to suppliers for operating expenses.Accrued liabilities relate to operating expenses.

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Definitions:

Rose Rosette Disease

A viral disease affecting roses, characterized by excessive thorniness, red pigmentation, and distorted growth, often leading to plant death.

Sulphur Treatment

Processes that remove sulfur compounds from various products, particularly in the oil and gas industry, to prevent pollution and corrosion.

Neem Oil Treatment

The application of neem oil, derived from the neem tree, as a natural pesticide to control pests and diseases in agriculture and horticulture.

Difference-In-Differences

Difference-in-differences is a method for identifying causality by looking at the way in which the average change over time in the outcome variable is compared to the average change in a control group.