When preparing its statement of cash flows, a firm discovers that its prepaid insurance decreased over the course of the period. Giver this information. which of the following statements is accurate? If the firm is using the direct method, this discovery should lead to an upward adjustment when calculating cash payments for operating expenses. If it is using the indirect method, this discovery should lead to a downward adjustment when calculating net cash flow from operating activities. If the firm is using the indirect method, this discovery should lead to a downward adjustment when calculating net cash flow from operating activities. If it is using the direct method, this discovery should lead to a downward adjustment when calculating cash payments for operating expenses. If the firm is using the indirect method, this discovery should lead to an upward adjustment when calculating net cash flow from operating activities. If it is using the direct method, this discovery should lead to an upward adjustment when calculating cash payments for operating expenses. If the firm is using the indirect method, this discovery should lead to an upward adjustment when calculating net cash flow from operating activities. If it is using the direct method, this discovery should lead to a downward adjustment when calculating cash payments for operating expenses