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The statement of cash flows (indirect method) reports depreciation expense as an addition to net income because depreciation causes an inflow of funds for the
The statement of cash flows (indirect method) reports depreciation expense as an addition to net income because depreciation causes an inflow of funds for the replacement of assets. reduces reported net income of the period but does not decrease cash. O is a direct use of cash. reduces reported net income and causes an inflow of cash
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