When the Indirect Method Is Used,if Prepaid Expenses Decrease During

question 10

Multiple Choice

When the indirect method is used,if prepaid expenses decrease during the accounting period,the change in prepaid expenses is:

• A)added to the change in the cash account.
• B)subtracted from net income.
• C)added to net income.
• D)subtracted from the change in the cash account.

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Definitions:

Prevailing Conditions

The current or most common circumstances, environments, or situations in a particular area or context.

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