When Converting an Income Statement from a Cash Basis to an Accrual

Multiple Choice

When converting an income statement from a cash basis to an accrual basis, which of the following is incorrect?

A) An adjustment for depreciation reduces net income.
B) A decrease in salaries payable decreases net income.
C) A reduction in prepaid expenses decreases net income.
D) An increase in accrued payables decreases net income.