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:

Water Quality

The chemical, physical, and biological characteristics of water, usually in respect to its suitability for a particular purpose.

Coastline

The outline or boundary that separates land from the ocean or sea, often characterized by its unique geographic features and ecosystems.

Oil Spill

The release of liquid petroleum hydrocarbon into the environment, particularly marine areas, due to human activities like drilling and transportation.

Environment Impact

The influence of human activities on the ecosystem, potentially causing habitat destruction, pollution, and climate change.