Under the indirect method,depreciation expense would be subtracted from net income when determining the amount of cash flow fromnet cash flow from operating activities.

Question

Quizplus · Accepted Answer

The calculation of accrual-based net income frequently includes noncash expenses such as depreciation expense.Since noncash expenses are deducted in determining net income,they must be added back to the amount of net income when computing net cash flow from operating activities.

Under the Indirect Method,depreciation Expense Would Be Subtracted from Net