When the indirect method of preparing the cashflow from operating activities is used, if prepaid expenses decrease during the accounting period, the change in prepaid expenses is:

Question $5$ options:

$1)$

added to the change in the cash account.

$2)$

subtracted from net income.

$3)$

added to net income.

$4)$

subtracted from the change in the cash account.

$5)$

is not relevant to the activity.$$