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    Intermediate Financial Management Study Set 2
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    Exam 7: Accounting for Financial Management
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    In Order to Accurately Estimate Cash Flow from Operations, Depreciation
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In Order to Accurately Estimate Cash Flow from Operations, Depreciation

Question 18

Question 18

True/False

In order to accurately estimate cash flow from operations, depreciation must be added back to net income. The reason for this is that even though depreciation is deducted from revenue it is really a non-cash charge.

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