Which of the Following Adjustments to Convert Net Income to Net

question 39

Multiple Choice

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

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