Question: Why is depreciation added to net income to determine cash flow from operations? Multiple Choice To compensate for financial risk. Depreciation is an expense but

Why is depreciation added to net income to determine cash flow from operations?
Multiple Choice
To compensate for financial risk.
Depreciation is an expense but not a cash outflow.
It is standard procedure when capital budgeting for a multinational corporation.
Net income is understated due to excessive depreciation.

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