A Company Uses the Indirect Method to Prepare the Statement

question 156

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows. How will amortization be presented on the statement?

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