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Statement of Cash Flows: Depreciation and amortization are added to net income in the Operating Activities section because they: a. amortization is not an expense.

Statement of Cash Flows: Depreciation and amortization are added to net income in the Operating Activities section because they:

a.

amortization is not an expense.

b.

are not a tax deductible expense.

c.

represents an inflow of cash.

d.

do not require the outlay of cash.

e.

result in an increase of net income.

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