A depreciation expense is _____ to calculate net cash from operating activities using the indirect method.
A) deducted from gross income
B) added to net income
C) deducted from tax expense
D) added to selling expense

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash charge, so it is added back to net income when calculating net cash from operating activities using the indirect method.

A Depreciation Expense Is _____ to Calculate Net Cash from Operating