Operating expenses + an increase in prepaid expenses - a decrease in accrued expenses payable = cash payments for operating expenses.

Question

Quizplus · Accepted Answer

Operating expenses + an increase in prepaid expenses - a decrease in accrued expenses payable does not directly equal cash payments for operating expenses because this calculation does not account for non-cash expenses or changes in other working capital accounts that affect cash flow.

Operating Expenses + an Increase in Prepaid Expenses - a Decrease