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When Preparing a Statement of Cash Flows Using the Indirect

question 9

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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:

Survey

A method of gathering data from a sample of individuals to discover information about a larger population.

Data

Information collected for reference or analysis.

Inference

The process of using data analysis to deduce properties of an underlying distribution of probability; drawing conclusions about populations based on sample data.

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