Which of the Following Adjustments to Convert Net Income to Net

question 40

Short Answer

Which of the following adjustments to convert net income to net cash provided by operating activities is correct? $$\begin{array} { l c c } & \text { Add to Net Income } & \text { Deduct from Net Income } \\\text { a. Accounts Receivable } & \text { increase } & \text { decrease } \\\text { b. Prepaid Expenses } & \text { increase } & \text { decrease } \\\text { c. Inventory } & \text { decrease } & \text { increase } \\\text { d. Taxes Payable } & \text { decrease } & \text { increase }\end{array}$$

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