When reconciling net income to net cash provided by operating activities,a(n)________ is an addition to net income.
A) increase in inventories
B) increase in accounts receivable
C) increase in wages payable
D) decrease in taxes payable

Question

Quizplus · Accepted Answer

An increase in wages payable is an addition to net income when reconciling to net cash provided by operating activities because it represents an expense that has been incurred but not yet paid in cash, thus increasing cash flow.

When Reconciling Net Income to Net Cash Provided by Operating