Reid Company's balance in prepaid insurance at the beginning and end of the year was $1,000 and $1,200, respectively. This will be reported on the statement of cash flows using the indirect method as: Click the answer you think is right. a decrease of $200 which will be added to net income an increase of $200 which will be subtracted from net income an increase of $200 which will be added to net income a decrease of $200 which will be subtracted from net income Read about this Do you know the answer? Think so No idea I know it Unsure

Question

16-12-2022
Business

contestada

Reid Company's balance in prepaid insurance at the beginning and end of the year was $1,000 and $1,200, respectively. This will be reported on the statement of cash flows using the indirect method as: Click the answer you think is right. a decrease of $200 which will be added to net income an increase of $200 which will be subtracted from net income an increase of $200 which will be added to net income a decrease of $200 which will be subtracted from net income Read about this Do you know the answer? Think so No idea I know it Unsure

Respuesta :

Otras preguntas

Which of the following statements is/are true? A. Increasing the surface area over which a force is distributed increases the amount of stress acting on the sur

Consider an interdisciplinary study that is aimed at understanding how ocean currents affect the distribution of coral larvae. What two disciplines of oceanogra

Efforts to discover whether the intelligence of children is more heavily influenced by their biology or by their home environments are most directly relevant to

For this example, let [tex]m_a and m_b[/tex] are masses l₁, l₂, l₃ and x be lengths t₁ and t₂ be times A mass density is defined as mass per volume, and a volum

The interest on an investment varies directly as the rate of interest. If the interest is $48 when the interest rate is 5%, find the interest when the rate is

What is a waste product usually excreted by the kidney?

What volume of a 0.20-M K2SO4 solution contains 57 g of K2SO4?

Which of the following is a consequence of biological magnification (biomagnification)? a. Toxic chemicals in the environment pose greater risk to top-level pre

A tube of toothpaste contains 0.76 g of sodium monofluorophosphate(Na2PO3F)in 100 ml. (a)What mass of florine atoms in mg was present? (b) How many fluorine

Nationalism encouraged people with a shared identity to

ACCESS MORE

Tutorconsortium416 Tutorconsortium416 · Answer 1 · 2022-12-24T11:06:52+01:00

Given that, Reid Company's balance in prepaid insurance at the beginning and end of the year was $1,000 and $1,200, respectively. Hence, by doing calculations, it is found out that the correct option is-

an increase of $200 which shall be subtracted from net income.

What is an increase in the prepaid expense account?

The gap between the opening and closing balances is reflected in the prepaid expense account as an increase.

What are prepaid expenses?

Prepaid expenses are asset accounts, and an increase implies that cash was spent on attaining the asset, so it is considered an application of cash and hence deducted from net income.

What is the definition of net income?

Net income is the amount of money left over after taxes as well as deductions are deducted from your paycheck. Net income is the money left over after paying operational expenses, administrative expenses, cost of products sold, taxes, insurance, and all other business expenses for a company.

Learn more about net income from

https://brainly.com/question/29989249

#SPJ4