Which One of the Following Statements Regarding the Effect of Depreciation

Multiple Choice

Which one of the following statements regarding the effect of depreciation when reconciling net income to net cash provided by operating activities is correct?

A) Depreciation expense is added in the cash flow from operations section.
B) Ignoring income tax effects, increasing depreciation expense will increase cash flows from operations.
C) Depreciation expense is a source of cash.
D) Depreciation expense is a cash outflow.