Jestion 11 Vhich of the following describes the reasoning behind the creatment of depreciation expense when preparing the statement of cash flows using the indirect method? O Depreciation expense represents cash saved for future purchases of equipment and therefore it must be subtracted from net income under the indirect method. O Depreciation expense represents cash received and therefore should be added to net income. Depreciation expense is initially subtracted from revenues to determine accrual basis net income, but does not affect cash. It is added back to net income in order to convert net income to its cash basis. Since depreciation expense is added to determine net income, it should be subtracted when adjusting net income under the indirect method