When preparing the operating activities section of the statement of cash flows using the indirect method,expenses with no cash outflows are added back to net income.

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Beree Anaya · Accepted Answer

Final Answer : True, Explanation :  This is true because expenses such as depreciation and amortization are non-cash expenses that have already been used to reduce net income, so they must be added back to accurately reflect the cash flow from operating activities.

When preparing the operating activities section of the statement of cash flows using the indirect method,expenses with no cash outflows are added back to net income.

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