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

The amortization of a patent is a non-cash expense similar to depreciation of a building, and is treated in a similar manner in the operating activities section of the statement of cash flows using the indirect method.

The Amortization of a Patent Is Treated in a Similar