Salem, Inc. uses the indirect method to prepare its statement of cash flows. Salem's Accumulated Depreciation-Trucks account increased during the period. Salem did not purchase or sell equipment during the period. The increase in Accumulated Depreciation-Trucks is:
A) subtracted from net income to determine net cash provided by operating activities.
B) added to net income to determine net cash provided by operating activities.
C) shown as a cash outflow on the investing activities section.
D) shown as a cash outflow on the financing activities section.

Question

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The Answer of Salem, Inc. uses the indirect method to prepare its statement of cash flows. Salem's Accumulated Depreciation-Trucks account increased during the period. Salem did not purchase or sell equipment during the period. The increase in Accumulated Depreciation-Trucks is:
A) subtracted from net income to determine net cash provided by operating activities.
B) added to net income to determine net cash provided by operating activities.
C) shown as a cash outflow on the investing activities section.
D) shown as a cash outflow on the financing activities section.