When Preparing a Statement of Cash Flows, a Decrease in Prepaid

question 71

Short Answer

When preparing a statement of cash flows, a decrease in prepaid insurance during a period would require which of the following adjustments in determining cash flows from operating activities? $\text { Indirect Method\quad Direct Method }$
A) $\begin{array}{ll}\text { increase } &\quad\quad \text { decrease } \\\end{array}$
B) $\begin{array}{ll}\text {decrease } &\quad\quad \text { increase } \\\end{array}$
C) $\begin{array}{ll}\text { increase } &\quad\quad \text { increase } \\\end{array}$
D) $\begin{array}{ll}\text {decrease } &\quad\quad \text { decrease }\end{array}$

• A)\(\begin{array}{ll}
• \text { increase } &\quad\quad \text { decrease } \\\end{array}\)
• B)\(\begin{array}{ll}\text {decrease } &\quad\quad \text { increase } \\\end{array}\)
• C)\(\begin{array}{ll}\text { increase } &\quad\quad \text { increase } \\\end{array}\)
• D)\(\begin{array}{ll}\text {decrease } &\quad\quad \text { decrease }
• \end{array}\)

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