In a Statement of Cash Flows (Indirect Method),depreciation Is Treated

In a statement of cash flows (indirect method) ,depreciation is treated as an adjustment to reported net income because depreciation

A) is an inflow of cash to a reserve account for asset replacement.
B) reduces the reported net income and involves an inflow of cash.
C) reduces the reported net income but does not involve an outflow of cash.
D) usually represents a significant portion of operating expenses.