When preparing the statement of cash flows by the indirect method,it is necessary to adjust for non-cash expenses such as depreciation expense.

Name: When preparing the statement of cash flows by the indirect method,it is necessary to adjust for non-cash expenses such as depreciation expense.
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Depreciation expense is a non-cash expense and therefore must be adjusted for when preparing the statement of cash flows using the indirect method.

When Preparing the Statement of Cash Flows by the Indirect