When using the direct method of preparing the statement of cash flows,depreciation expense is added to net income.

Name: When using the direct method of preparing the statement of cash flows,depreciation expense is added to net income.
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Quizplus · Accepted Answer

In the direct method of preparing the statement of cash flows, depreciation expense is not added back to net income because the direct method focuses on the actual cash flows from operating activities, not adjustments to net income.

When Using the Direct Method of Preparing the Statement of Cash