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Which of the following statements is correct with respect to the determination of cash flows from operating activities? A. A decrease in prepayments is subtracted

Which of the following statements is correct with respect to the determination of cash flows from operating activities?

  • A. A decrease in prepayments is subtracted from net income.
  • B. An increase in accounts payable is subtracted from net income.
  • C. A gain on early retirement of a zero coupon bond is subtracted from net income.
  • D. A decrease in accounts payable is added to net income.

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