When Preparing the Statement of Cash Flow Using the Indirect

question 87

Multiple Choice

When preparing the statement of cash flow using the indirect method,Depreciation Expense is:

• A)added back to net income under the operating activities section.
• B)subtracted from net income under the operating activities section.
• C)subtracted net income under the financing activities section.
• D)added back to net income under the financing activities section.

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Definitions:

Water Cycle

The continuous movement of water on, above, and below the surface of the Earth, involving processes such as evaporation, condensation, precipitation, and runoff.

Equatorial Air

A type of warm, moist air found near the Earth's equator, contributing to the climate and weather patterns of equatorial regions.

Moisture

The presence of a liquid, especially water, often in trace amounts.

Rain Shadow

A dry area on the leeward side of a mountainous area, where precipitation is significantly less than on the windward side.