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  1. business
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  3. in the statement of cash flows, the amount of depr

In the statement of cash flows, the amount of depreciation and amortization expense is added...

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Accounting

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In the statement of cash flows, the amount of depreciation and amortization expense is added back to net income because: these expenses do not affect cash, but were subtracted in the determination of net income. these expenses affect investing activities, not operating activities. the cash disbursements for these accrued expenses will be made in a future period. these expenses are recognized for accounting purposes, but they do not represent economic costs

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