Depreciation expense
A) is subtracted from the statement of cash flows.
B) is added to the statement of cash flows because it is not an expenditure.
C) is listed on the income statement as a variable expense.
D) appears only on the income statement.

Question

Quizplus · Accepted Answer

Depreciation expense is added back to net income on the cash flow statement because it is a non-cash expense that reduces net income on the income statement but does not affect cash flow.

Depreciation Expense