Using the indirect method, which of the following would be added to net income?

A) increase in accounts receivable
B) increase in prepaid expenses
C) depreciation expense
D) decrease in accounts payable

Depreciation Expense

The methodical distribution of a tangible asset's cost throughout its usable life.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue, often referred to as the bottom line.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.