To determine cash payments for operating expenses for the cash flow statement using the direct method, depreciation expense is added to net income.

Name: To determine cash payments for operating expenses for the cash flow statement using the direct method, depreciation expense is added to net income.
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Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense and therefore, it is not considered in the calculation of cash payments for operating expenses using the direct method.

To Determine Cash Payments for Operating Expenses for the Cash