When using the indirect method, how is depreciation expense recorded on the statement of cash flows?
A) Operating activity
B) Investing activity
C) Financing activity
D) Noncash investing and financing activity

Question

Quizplus · Accepted Answer

Depreciation expense is added back to net income in the operating section of the statement of cash flows under the indirect method because it is a noncash expense.

When Using the Indirect Method, How Is Depreciation Expense Recorded