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In a Typical Cash Flow Statement, Prepared Using the Indirect

Question 3

Multiple Choice

In a typical cash flow statement, prepared using the indirect method, which of the following statements about depreciation is correct?


A) Depreciation expense usually appears in the investing section, as a reduction to investing cash flows.
B) Depreciation expense usually appears in the investing section, as an addition to investing cash flows.
C) Depreciation expense usually appears in the operating section, as a reduction to operating cash flows.
D) Depreciation expense usually appears in the operating section, as an addition to operating cash flows.

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