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.

Grasp the basics of the income statement preparation and its components.

Understand the process and importance of adjusting entries in financial statements.

Calculate financial transactions using the accrual basis of accounting.

Identify and record transactions in appropriate journals.

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