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A Company Uses the Indirect Method to Prepare the Statement

Question 91

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows. How will amortization be presented on the statement?


A) Amortization expense will be added to net income in the financing activities section.
B) Amortization expense will be subtracted from net income in the operating section.
C) Amortization expense will be added to net income in the operating activities section.
D) Amortization expense will be added to net income in the investing activities section.

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