In a Typical Cash Flow Statement, Prepared Using the Indirect

question 64

Multiple Choice

In a typical cash flow statement, prepared using the indirect method, which of the following statements about depreciation is correct?

• A) Depreciation expense usually appears in the investing section, as a reduction to investing cash flows.
• B) Depreciation expense usually appears in the investing section, as an addition to investing cash flows.
• C) Depreciation expense usually appears in the operating section, as a reduction to operating cash flows.
• D) Depreciation expense usually appears in the operating section, as an addition to operating cash flows.

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