When the Indirect Method Is Used,if a Prepaid Expense Account

question 132

Multiple Choice

When the indirect method is used,if a prepaid expense account increases during the accounting period,the change in the prepaid expense account is:

• A)added to the change in the cash account.
• B)added to net income.
• C)subtracted from net income.
• D)subtracted from the change in the cash account.