In the statement of cash flows,which event would cause net income to be increased?
A)A decrease in Inventory
B)An increase in Prepaid Insurance
C)A decrease in Accounts Payable
D)An increase in Accounts Receivable

Question

Quizplus · Accepted Answer

A decrease in Inventory would cause net income to be increased because it implies lower cost of goods sold, thereby increasing gross profit and ultimately net income.

In the Statement of Cash Flows,which Event Would Cause Net