In the Operating Activities Section of a Statement of Cash

question 77

Essay

In the operating activities section of a statement of cash flows prepared using the indirect method certain items are added to net income. Why is depreciation added?

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Definitions:

Task-oriented Role

A role within a team that focuses on the completion of tasks and the achievement of goals, prioritizing efficiency and effectiveness.

Relations-oriented Role

A focus or function in teamwork or leadership that prioritizes maintaining positive interpersonal relationships and team dynamics.

Diversity

The inclusion of individuals from a variety of backgrounds, perspectives, and abilities, enriching the social fabric and potentially increasing organizational effectiveness.

Shared Responsibility

The concept that duties and obligations are distributed among members of a group, leading to collective accountability.