Under the Indirect Method,depreciation Expense Is Added to Net Income

Multiple Choice

Under the indirect method,depreciation expense is added to net income to arrive at cash flow from operating activities.Depreciation is handled this way because

A) it is an inflow of cash
B) it should be subtracted in arriving at net income
C) it is deducted in arriving at net income but does not reduce cash
D) it should be subtracted in arriving at cash from investing activities