Under the indirect method of preparing the statement of cash flows, depreciation expense is

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AAdded back to net income
BSubtracted from net income
CShown as a financing activity
DShown as an investing activity

✓ Correct answer: A. Added back to net income Depreciation is a non-cash expense that reduced net income but did not use cash. Therefore, it is added back to net income to calculate cash from operating activities.

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Under the indirect method of preparing the statement of cash flows, depreciation expense is

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