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Which of the Following Adjustments to Convert Net Income to Net

Question 91

Multiple Choice

Which of the following adjustments to convert net income to net cash provided by operating activities is correct?
Add to Net Income  Deduct from Net Income \begin{array}{ll}&&&&&&&\text {\quad\quad Add to Net Income }&\text { Deduct from Net Income}\\\end{array}


A)  Accounts Receivable  increase decrease  \begin{array}{ll}\text { Accounts Receivable }&\text { increase } & \text {\quad\quad\quad decrease } \\ \end{array}

B)  Prepaid Expensesincrease decrease  \begin{array}{ll}\text { Prepaid Expenses}&\text {\quad increase } & \text {\quad\quad\quad\quad decrease } \\ \end{array}

C)  Inventorydecrease increase  \begin{array}{ll}\text { Inventory}&\text {\quad\quad\quad\quad decrease } & \text {\quad\quad\quad\quad increase } \\ \end{array}

D)  Taxes Payabledecrease increase  \begin{array}{ll}\text { Taxes Payable}&\text {\quad\quad decrease } & \text {\quad\quad\quad\quad increase }\end{array}

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