Which of the following is subtracted from net profit to arrive at cash from operations?
A) Depreciation
B) An increase in wages payable
C) An increase in prepaid rent
D) A decrease in accounts receivable

Question

Quizplus · Accepted Answer

An increase in prepaid rent is subtracted from net profit to arrive at cash from operations because it represents a payment made in advance for expenses, which does not affect the current period's cash flow.

Which of the Following Is Subtracted from Net Profit to Arrive