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On a Reconciliation of Net Income to Cash from Operations

Question 77

Multiple Choice

On a reconciliation of net income to cash from operations, depreciation is treated as an adjustment to net income because depreciation:


A) is a direct outflow of cash.
B) reduces net income but does not involve an outflow of cash.
C) reduces net income and involves an outflow of cash.
D) is an outflow of cash to a reserve account for replacement of assets.

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