Question:Why is depreciation added back in the cash flow statement? 

A It is a substantial number which could skew the report if ignored 
B Companies handle depreciation differently so it is added back to neutralize any effects 
C It is non taxable 
D It is a transaction which will never impact cash and needs to be reversed out from its effect on net income 

+ Answer
B 

+ Explanation
Answer not sure

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Md. Habib Ullah

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