When computing the net cash provided by operating activities under the indirect method on the statement of cash flows, an increase in prepaid expenses would be added to net income.

Name: When computing the net cash provided by operating activities under the indirect method on the statement of cash flows, an increase in prepaid expenses would be added to net income.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

An increase in prepaid expenses is a decrease in cash, so it would be subtracted from net income under the indirect method.

When Computing the Net Cash Provided by Operating Activities Under