If a Company Uses the Indirect Method to Prepare the Statement

question 112

Multiple Choice

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

• A)Depreciation expense can be added to net income in the financing activities section on the statement of cash flows.
• B)Depreciation expense can be subtracted from net income in the operating section on the statement of cash flows.
• C)Depreciation expense can be added to net income in the investing activities section on the statement of cash flows.
• D)Depreciation expense can be added to net income in the operating activities section on the statement of cash flows.

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