If a Company Uses the Indirect Method to Prepare the Statement

question 11

Multiple Choice

If a company uses the indirect method to prepare the statement of cash flows, how will depreciation be presented on the statement?

• A)Depreciation expense will be added to net income in the financing activities section.
• B)Depreciation expense will be subtracted from net income in the operating section.
• C)Depreciation expense will be added to net income in the investing activities section.
• D)Depreciation expense will be added to net income in the operating activities section.