When Using the Indirect Method to Complete the Cash Flows

question 127

Multiple Choice

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

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