Why decrease in prepaid expense is added in cash flow statement as it does not result in any cash inflow - Accountancy - Cash Flow Statement

Question

Why decrease in prepaid expense is added in cash flow statement as
it does not result in any cash inflow? Plz explain in bit detail as
it seems confusing

Abhishek Nagar · Accepted Answer

This is because of accurual concept of accounting as
P&L STATEMENT IS PREPARED ON ACCURUAL BASIS
SO TO ASCERTAIN FLOW OF CASH IT IS ADDED BACK

Why decrease in prepaid expense is added in cash flow statement as it does not result in any cash inflow? Plz explain in bit detail as it seems confusing