Under the indirect method of preparing a statement of cash flows, depreciation expense for the current period is:
A)added in the operating activities section.
B)subtracted in the operating activities section.
C)not reported.
D)reported in the investing activities section.

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash charge and is added back to net income in the operating activities section to reconcile net income to net cash provided by operating activities.

Under the Indirect Method of Preparing a Statement of Cash