Select the financial statement on which the user would most likely find the answer to the question given. (Select all that apply.)
-How much depreciation expense did the company report during the year?
A)Income statement
B)Balance sheet
C)Statement of cash flows
D)Statement of retained earnings

Question

Quizplus · Accepted Answer

Depreciation expense is reported on the income statement as it is an expense that affects net income. It is also reflected in the cash flow from operating activities section of the statement of cash flows, as it is added back to net income to arrive at cash generated from operations, since it is a non-cash expense.

Select the Financial Statement on Which the User Would Most