Which of the following adjustments to convert net income to net cash provided by operating activities is incorrect? Add to Net Income Deduct from Net Income A. Accounts Receivable decrease increase B. Prepaid Expenses increase decrease C. Inventory decrease increase D. Accounts Payable increase decrease

Respuesta :

Answer:

B. Prepaid Expenses increase decrease

Explanation:

When the net income would be converted to net cash provided by operating activities so the above answer would be held incorrect

As the correct adjustment would be when there is decrease in the prepaid expense so the same would be added to the net income and when it increased so the same would be deducted from the net income

Therefore, the option b is correct

Hence, the other options would be incorrect

The daily operations of a corporation involved in producing and selling its product, generating revenues, as well as fundamental management and software maintenance, are referred to as operating activities.  Fabrication, marketing, promotion, and branding are all important aspects of a company's operations.

The correct answer that is not in the context of the operating activities is  B. Prepaid Expenses increase decrease

When net income is converted to net cash generated by operational operations, the answer given above is erroneous.

As the appropriate correction, when the prepaid expense lowers, it is credited to the net revenue, and when it grows, it is removed from the net earnings.

Therefore, option b is the correct answer.

To know more about the adjustments of the operating activities, refer to the link below:

https://brainly.com/question/25656124