When the Indirect Method Is Used,if a Prepaid Expense Account

question 1

Multiple Choice

When the indirect method is used,if a prepaid expense account decreases during the accounting period,the change in the prepaid expense account 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:

Cerebrovascular Accident

Also known as a stroke, a medical condition characterized by sudden death of brain cells due to lack of oxygen, caused by blockage or rupture of an artery to the brain.

Valsalva Manoeuvre

Forceful exhalation against a closed glottis, which increases intrathoracic pressure and, thus, interferes with venous blood return to the heart.

Body Alignment

The proper positioning and arrangement of body parts to maintain posture and prevent injury.

Contractures

The permanent and painful tightening of muscles, tendons, ligaments, or skin that prevents normal movement of the associated body part.