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

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