Which of the Following Adjustments to Convert Net Income to Net

question 51

Short Answer

Which of the following adjustments to convert net income to net cash provided by operating activities is correct? $\begin{array}{lll}&&&&&&&&&&\text { Add to Net Income}&\text { Deduct from Net Income}\\\end{array}$
A) $\begin{array}{lll}\text { Accounts Receivable } && \text { increase } &&&& \text { decrease } \\\end{array}$
B) $\begin{array}{lll}\text { Prepaid Expenses } &&& \text { increase } &&&& \text { decrease } \\\end{array}$
C) $\begin{array}{lll}\text { Inventory } &&&&&& \text { decrease }&&& & \text { increase } \\\end{array}$
D) $\begin{array}{lll}\text { Taxes Pavable } &&&& \text { decrease } &&&& \text { increase }\end{array}$

• A)\(\begin{array}{lll}
• \text { Accounts Receivable } && \text { increase } &&&& \text { decrease } \\\end{array}\)
• B)\(\begin{array}{lll}\text { Prepaid Expenses } &&& \text { increase } &&&& \text { decrease } \\\end{array}\)
• C)\(\begin{array}{lll}\text { Inventory } &&&&&& \text { decrease }&&& & \text { increase } \\\end{array}\)
• D)\(\begin{array}{lll}\text { Taxes Pavable } &&&& \text { decrease } &&&& \text { increase }
• \end{array}\)

Apply knowledge of the accounting cycle and its components.

Analyze financial statements to determine a company's financial health and operational efficiency.

Understand the structure and preparation of worksheets, including the steps involved and what is not included.

Identify and order the listing of assets on a classified balance sheet.

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