One of the biggest noncash items on the income statement is depreciation which needs to be subtracted from net income to determine cash flows for the firm.

Name: One of the biggest noncash items on the income statement is depreciation which needs to be subtracted from net income to determine cash flows for the firm.
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Question

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Depreciation is a noncash expense that is added back to net income when calculating cash flows, not subtracted.

One of the Biggest Noncash Items on the Income Statement