In Calculating Net Cash Provided by Operating Activities Using the Indirect

question 189

Multiple Choice

In calculating net cash provided by operating activities using the indirect method an increase in prepaid expenses during a period is

• A) deducted from net income.
• B) added to net income.
• C) ignored because it does not affect income.
• D) ignored because it does not affect expenses.

---

Definitions:

Cross-Functional

Pertaining to a process, project, or team that involves and utilizes the expertise of members from different departments or areas of discipline.

Hybrid Supply Structures

Supply chain models that incorporate a mix of in-house and outsourced activities to optimize efficiency and flexibility.

Decentralized

Refers to the distribution of functions, powers, people, or organizations away from a central location or authority.

Centralized

A system or structure where decision-making or operational activities are concentrated at a single point or location, typically in the context of organizational management.