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

Question

Quizplus · Accepted Answer

A decrease in Prepaid Insurance would result in a decrease in an expense and therefore an increase in net income.

In the Statement of Cash Flows (Indirect Method),which Event Would