Under the indirect method,amortization expense would be:
A) added to net income in the operating activities section
B) subtracted from net income in the operating activities section
C) added to net income in the financing activities section
D) added to net income in the investing activities section

Question

Quizplus · Accepted Answer

Amortization expense is a non-cash expense. Under the indirect method of preparing the cash flow statement, non-cash expenses are added back to net income in the operating activities section to adjust for the cash flow.

Under the Indirect Method,amortization Expense Would Be