When reconciling net income to net cash provided by operating activities, all of the following would be an appropriate procedure except:
A) adding depreciation expense
B) adding a decrease in inventories
C) subtracting a decrease in prepaid expenses
D) subtracting a decrease in accounts payable

Question

Quizplus · Accepted Answer

Subtracting a decrease in prepaid expenses would not be an appropriate procedure because it would decrease net cash provided by operating activities, whereas the goal is to reconcile net income to net cash provided by operating activities.

When Reconciling Net Income to Net Cash Provided by Operating