Question: Firms using the direct method of reporting operating activities must add back depreciation because it does not include the outflow of cash. do not include

Firms using the direct method of reporting operating activities 

 must add back depreciation because it does not include the outflow of cash. 

do not include investing and financing sections on the statement of cash flows. 

must add back income taxes paid. 

must present major classes of gross receipts and disbursements

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