Asked by Derise Major on Jun 24, 2024
Verified
A decrease in prepaid expenses of $8,000 for the year
A) decreases cash flow from operating activities by $8,000.
B) increases cash flow from operating activities by $8,000.
C) decreases cash flow from operating activities by $16,000.
D) increases cash flow from operating activities by $16,000.
Cash Flow
The net amount of cash and cash-equivalents being transferred into and out of a business.
Operating Activities
Activities that relate to the primary, day-to-day operations of a business, such as selling products or providing services.
Prepaid Expenses
Assets on the balance sheet representing services or goods paid for upfront but not yet consumed.
- Evaluate the influence of modifications in balance sheet accounts on the movement of cash flows.
Verified Answer
Learning Objectives
- Evaluate the influence of modifications in balance sheet accounts on the movement of cash flows.
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