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Rainbow [258]
1 year ago
8

When preparing the statement of cash flows using the indirect method, depreciation expense is added to net income because it ___

___.
Business
1 answer:
kodGreya [7K]1 year ago
8 0

When preparing the statement of cash flows using the indirect method, depreciation expense is added to net income because net income is a starting point in measuring cash flows from operating activities

<h3>What is a Balance Sheet?</h3>

This refers to the inventory taken for all goods available in a warehouse, showing its financial records.

Hence, we can see that when a person is preparing the statement of cash flows with the indirect method, there is the addition of depreciation expense simply because the net income must be factored in.

Read more about statement of cash flows here:
brainly.com/question/735261

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Crowding out may occur when fiscal policy involves increases in government purchases. This borrowing in turn, affects the money that will be available to the private investors as there'll be lesser funds for them.

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