Under the indirect method, noncash operating expenses are added back to net income when preparing the investing section of the statement of cash flows.

Name: Under the indirect method, noncash operating expenses are added back to net income when preparing the investing section of the statement of cash flows.
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Question

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Under the indirect method, noncash operating expenses are added back to net income in the operating section, not the investing section, of the statement of cash flows.

Under the Indirect Method, Noncash Operating Expenses Are Added Back