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.