Qtopia Company Uses the Direct Method to Prepare Its Cash

True/False

Qtopia Company uses the direct method to prepare its cash flow statement.It has reported operating expenses of $21 000 on its income statement for the year 2016.If the balance in accrued liabilities has gone up by $1 000 during the year,then $1 000 will have to be added to $21 000 as part of the process to calculate payments to suppliers for operating expenses.