When reconciling net income to net cash provided by operating activities, a(n) is a deduction from net income.
A) decrease in accounts payable
B) increase in unearned revenues
C) decrease in prepaid rent
D) decrease in inventories

Question

Quizplus · Accepted Answer

A decrease in accounts payable indicates that cash has been used to pay off liabilities, which is a deduction from net income when reconciling to net cash provided by operating activities.

When Reconciling Net Income to Net Cash Provided by Operating