Identify the correct statement regarding preparing cash flow from operations using the indirect method.\ \ Multiple choice question.\ \ It adjusts for items included in accrual-basis net income that did not affect operating cash flows.\ \ \ It must present major classes of gross receipts and disbursements.\ \ \ Noncash expenses such as depreciation and amortization must be subtracted from accrual-basis net income.\ \ \ It adjusts for items excluded from accrual-basis net income that did not affect operating cash flows such as rent received in advance.