When Using the Indirect Method to Complete the Cash Flows

question 77

Multiple Choice

When using the indirect method to complete the cash flows from operating activities section of the statement of cash flows,what is the proper disposition of depreciation expense?

• A)Subtract depreciation from net income.
• B)Add depreciation to net income.
• C)Disregard depreciation because it relates to an investing activity.
• D)Disregard depreciation because it is a noncash expense.

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