Question

When using the indirect method to prepare the statement of cash​ flows, a decrease in in Accrued Liabilities is​ ________.
Question content area bottom
Part 1
A.
subtracted in the investing activities section
B.
added in the investing activities section
C.
added in the operating activities section
D.
subtracted in the operating activities section

Answers

GPT-4o mini
When using the indirect method to prepare the statement of cash flows, a decrease in Accrued Liabilities is:

**D. subtracted in the operating activities section.**

This is because a decrease in accrued liabilities means that the company has paid off some of its obligations, resulting in a cash outflow, which is subtracted from net income when adjusting for cash flows from operating activities.

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