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When Preparing a Statement of Cash Flows Using the Indirect

question 9

Essay

When preparing a statement of cash flows using the indirect method,why is depreciation added back to net income within the operating activities section?


Definitions:

Circular Reference

A situation in which a formula or calculation in a system refers back to itself directly or indirectly, potentially causing errors or infinite loops.

Reference

An indication to a source of information or data, often used in research, writing, or programming to point to external details or evidence.

Typing

The action or process of writing by pressing keys on a keyboard.

Number Format

A setting that determines how numbers are displayed, such as decimal places, currency symbols, or percentages.

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