Using the Indirect Method to Calculate Net Cash Provided by Operating

question 36

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 net income.

---

Definitions:

Observational Research

A research method involving the systematic observation and documentation of behaviors or phenomena as they occur in their natural settings.

Sentiment

The emotional tone or attitude expressed in a piece of text, speech, or other forms of communication.

Secondary Research

The process of collecting and analyzing existing data that was gathered by others, as opposed to conducting new or primary research.

Industry Databases

Specialized digital collections of information, data, and statistics relevant to a specific sector or industry, used for research and analysis.