Question: A decrease in the prepaid expenses account of $1,000 over the course of a year would be shown on the company's statement of cash flows
A decrease in the prepaid expenses account of $1,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as
| an addition to net income of $1,000 in order to arrive at net cash provided by operating activities. | ||
| a deduction from net income of $1,000 in order to arrive at net cash provided by operating activities. | ||
| an addition of $1,000 under financing activities. | ||
| a deduction of $1,000 under financing activities. |
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