Depreciation expense is not reported on a statement of cash flows prepared under the direct method.

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense that is added back to net income in the operating activities section of the statement of cash flows prepared using the indirect method. However, in the direct method, operating cash flows are reported by directly disclosing actual cash inflows and outflows from operating activities, and hence depreciation expense is not separately reported.

Depreciation Expense Is Not Reported on a Statement of Cash