When accrued liabilities increase from the beginning to the end of the year,it means accrued expenses were greater than cash payments of such expenses,and,under the indirect method,the increase in accrued liabilities would be added to net income to convert to cash flow from operating activities.

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Accrued liabilities are expenses that have been incurred but not yet paid for. If the accrued liabilities increase from the beginning to the end of the year, it means that the amount of expenses accrued during the year was greater than the amount of cash payments made for those expenses. When using the indirect method to calculate cash flow from operating activities, the increase in accrued liabilities is added to net income to adjust for non-cash expenses and convert to cash flow.

When Accrued Liabilities Increase from the Beginning to the End