In Creating a Cash Flow Statement Using the Indirect Method,which

Multiple Choice

In creating a cash flow statement using the indirect method,which of the following statements is TRUE about depreciation expense?

A) It is added back to purchases of non-current assets under investing activities.
B) It is added back as an adjustment to profit in the operating activities section.
C) It is shown as a negative cash flow under operating activities.
D) It is shown as a negative cash flow in the investing activities section.