The amortization of a patent is treated in a similar manner to depreciation of a building when preparing the operating activities section of the statement of cash flows using the indirect method.

Question

Quizplus · Accepted Answer

This statement is true. The amortization of a patent is a non-cash expense that is included in the operating activities section of the statement of cash flows. It is treated in a similar manner to depreciation of a building or other fixed asset.

The Amortization of a Patent Is Treated in a Similar