An Increase in Accrued Liabilities of $1,000 During a Year

question 49

Multiple Choice

An increase in accrued liabilities of $1,000 during a year would be shown on the company's statement of cash flows prepared under the indirect method as:

• A) an addition to net income of $1,000 in order to arrive at net cash provided by operating activities.
• B) a deduction from net income of $1,000 in order to arrive at net cash provided by operating activities.
• C) a deduction of $1,000 under investing activities.
• D) an addition of $1,000 under financing activities.