Which of the Following Adjustments to Convert Net Income to Net

question 112

Multiple Choice

Which of the following adjustments to convert net income to net cash provided by operating activities is incorrect?
$\begin{array}{lll}&\text {\quad\quad\quad\quad\quad\quad\quad Add to Net Income }&\text { Deduct from Net Income }\\\end{array}$

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

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