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How would an increase in the Prepaid Insurance act of $5,000 over the year be shown on the statement of cash flows prepared under the indirect method?

A)     As an addition of $5, under financing activities

B)     As a deduction of $5, under financing activities

C)     As an addition to net income of $5, in order to arrive at net cash provided by operating activities

D)     As a deduction from net income of $5, in order to arrive at net cash provided by operating activities

 

 

Cash Flow Forecasting Insurance Economics
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Question added by Jaishri Navani , Finance Manager , West Zone Fresh Supermarket LLC
Date Posted: 2016/05/08
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FEYISAYO OGUNSANYA
by FEYISAYO OGUNSANYA , ACCOUNTS EXECUTIVE , SWIFT OIL LIMITED

D)     As a deduction from net income of $5, in order to arrive at net cash provided by operating activities

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