Question: When the indirect method is used, if a prepaid expense account increases during the accounting period, the change in the prepaid expense account is: A)

  1. When the indirect method is used, if a prepaid expense account increases during the accounting period, the change in the prepaid expense account is:

A) added as a source of cash on the cash flow statement

B) added to net income.

C) subtracted from net income.

D) subtracted as a use of cash on the cash flow statement

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