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Question(s) / Instruction(s):

A company uses the indirect method to prepare the statement of cash flows. How will depreciation be presented on the statement? a) Depreciation expense will be added to net income in the financing activities section. b) Depreciation expense will be subtracted from net income in the operating section. c) Depreciation expense will be added to net income in the operating activities section. d) Depreciation expense will be added to net income in the investing activities section.

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