The Prepaid Rent Balance Has Decreased During the Year

question 101

Multiple Choice

The Prepaid Rent balance has decreased during the year. How would this affect the Statement of Cash Flows operations section under the indirect method?

• A)It is already included in the net income.
• B)It would be added back to net income.
• C)It would be subtracted from net income.
• D)It does not affect the cash flow from operations.

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Definitions:

True Ribs

The first seven pairs of ribs that are directly attached to the sternum through their costal cartilages, providing vital protection for the thoracic organs.

Sternum

The long, flat bone located in the center of the chest, connected to the rib bones by cartilage, commonly known as the breastbone.

Spongy Bone

A type of bone tissue that is characterized by its porous, honeycomb-like structure, found at the ends of long bones and in the inner layer of flat bones.

Red Bone Marrow

The soft tissue inside bones that produces blood cells.