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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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