Avatar Company Uses the Indirect Method to Prepare the Cash

question 6

True/False

Avatar Company uses the indirect method to prepare the cash flow statement.Please refer to the following section of the comparative balance sheet:
$$\begin{array} { | l | r | r | r | } \hline & { \mathbf { 2 0 1 7 } } & { \mathbf { 2 0 1 6 } } & { \text { Increase/decrease } } \\\hline \text { Accounts payable } & \$ 4000 & \$ 6000 & \$ ( 2000 ) \\\hline \text { Accrued liabilities } & 2000 & 1000 & 1000 \\\hline \text { Long-term bills payable } & 84000 & 90000 & ( 6000 ) \\\hline \text { Total liabilities } & \$ 90000 & \$ 97000 & \$ ( 7000 ) \\\hline\end{array}$$
The change in accounts payable will be shown as a positive cash flow in the adjustments to Profit.

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Definitions:

Androgens

A group of hormones that play a role in male traits and reproductive activity; present in both males and females.

Estrogens

A group of hormones that play a critical role in the development and regulation of the female reproductive system and secondary sexual characteristics.

Testosterone

A primary male sex hormone that plays key roles in health and development, but is also found in females in smaller amounts.

Corpus Callosum

A large band of nerve fibers connecting the two hemispheres of the brain, facilitating communication and coordination between them.