Depreciation is subtracted from net income in arriving at a firm's cash flow from operations under the indirect method to cash flow statement preparation.

Name: Depreciation is subtracted from net income in arriving at a firm's cash flow from operations under the indirect method to cash flow statement preparation.
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Question

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Depreciation is added back to net income in the cash flow from operations section under the indirect method because it is a non-cash expense that was subtracted to calculate net income.

Depreciation Is Subtracted from Net Income in Arriving at a Firm's