1) MC Qu. 42 An increase in accrued ... An increase in accrued liabilities of $1

Question

1) MC Qu. 42 An increase in accrued ...

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 of $1,000 under investing activities.

C) an addition of $1,000 under financing activities.

D) a deduction from net income of $1,000 in order to arrive at net cash provided by operating activities.

Explanation / Answer

An addition to net income of $1,000 in order to arrive at net cash provided by operating activities. Option A is correct

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