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    Question

    Depreciation would be classified as:

    A Investing cash flow Correct Answer Incorrect Answer
    B Operating cash flow Correct Answer Incorrect Answer
    C Financing cash flow Correct Answer Incorrect Answer
    D No cash flow impact Correct Answer Incorrect Answer
    E Either a or b Correct Answer Incorrect Answer

    Solution

    Depreciation is a non-cash expense so it does not have any impact on cash flows.

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