Depreciation Is Added Back to Net Income in a Statement

question 209

Multiple Choice

Depreciation is added back to net income in a statement of cash flows prepared using the indirect method because it:

• A)reduces net income but not cash.
• B)is a cash inflow.
• C)is a revenue.
• D)is a valuation concept.

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Definitions:

Royal Flush

The highest possible hand in poker, consisting of the ace, king, queen, jack, and ten of the same suit.

Full House

In poker, a hand that contains three cards of one rank and two cards of another rank.

O-negative Blood

A blood type characterized by the lack of A, B, and Rh antigens on the surface of red blood cells, making it a universal donor type for blood transfusions.

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