How is “Depreciation Expense” separately listed in the Operations Section of the Statement of Cash Flows...

How is “Depreciation Expense” separately listed in the Operations Section of the Statement of Cash Flows using the Direct and Indirect methods?

Select one:

Direct	Indirect
Added	Added

Direct	Indirect
Subtracted	Subtracted

Direct	Indirect
Not Listed	Added

Direct	Indirect
Added	Not Listed

Direct	Indirect
Subtracted	Added

Solutions

Expert Solution

Answer:

a. Direct Indirect

Added Added

The use of depreciation can reduce taxes that can ultimately help to increase net income. Net income is then used as a starting point in calculating a company's operating cash flow. The result is a higher amount of cash on the cash flow statement because depreciation is added back into the operating cash flow

ekkarill92 answered 2 years ago

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