While preparing the statement of cash flows using the indirect method, Depreciation Expense is subtracted from Net Income under operating activities.

Name: While preparing the statement of cash flows using the indirect method, Depreciation Expense is subtracted from Net Income under operating activities.
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Question

Quizplus · Accepted Answer

Depreciation Expense is added back to Net Income under operating activities because it is a non-cash expense that reduces net income but does not affect cash flow.

While Preparing the Statement of Cash Flows Using the Indirect