Using the Indirect Method to Calculate Net Cash Provided by Operating

question 113

Multiple Choice

Using the indirect method to calculate net cash provided by operating activities, a decrease in prepaid expenses is:

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

---

Definitions:

Bush-Clover

A type of plant belonging to the genus Lespedeza, known for its slender branches and small pea-like flowers, and often featured in East Asian art and literature for its aesthetic qualities.

Autumn

One of the four seasons, marked by the cooling of temperature and the falling of leaves from deciduous trees, typically considered to run from September to November in the Northern Hemisphere.

Kamakura Sculptor

Identifies a sculptor or the style of sculpture originating from the Kamakura period in Japan, spanning from 1185 to 1333, known for its realistic and expressive Buddhist statues.

Buddhist Priest Kuya

A prominent Japanese Buddhist monk known for his missionary work and public preaching, often depicted in sculptures showing him in a dynamic posture with six miniature Amida Buddhas emanating from his mouth.