For each of the following operating activities, select whether it is a source of cash, a use of cash, neither under the indirect method.
-depreciation expense
A)source
B)use
C)neither

Question

Quizplus · Accepted Answer

Depreciation expense is added back to net income in the operating activities section of the cash flow statement under the indirect method because it is a non-cash expense that reduced net income but did not involve an actual outflow of cash.

For Each of the Following Operating Activities, Select Whether It