Which of the following statements is true?

(a) The decrease in prepaid expenses is deducted because the firm has recognized an expense in the current period for which cash was paid in an earlier period, on a net basis.

(b) An increase in income taxes payable is added because less has been paid for taxes than was recorded as income tax expense.

(c) An increase in accounts receivable is added because more sales revenue has been included in net income than has been collected in cash from customers.

(d) The decrease in accrued liabilities is added to net income because it reflects the payment of cash for expenses recorded in a prior period.