When reconciling net income to net cash provided by operating activities,a(n)________ is a deduction from net income.
A) decrease in inventories
B) increase in unearned revenues
C) decrease in prepaid rent
D) decrease in accounts payable

Question

Quizplus · Accepted Answer

A decrease in accounts payable is a deduction from net income when reconciling to net cash provided by operating activities because it implies that the company has paid off some of its accounts payable, reducing cash.

When Reconciling Net Income to Net Cash Provided by Operating