Depreciation expense is listed on the direct method statement of cash flows because it affects income.

Name: Depreciation expense is listed on the direct method statement of cash flows because it affects income.
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Quizplus · Accepted Answer

Depreciation expense is a non-cash expense that is added back to net income when preparing the operating activities section of the statement of cash flows using the indirect method. It is not listed on the direct method statement of cash flows as it only shows actual cash inflows and outflows.

Depreciation Expense Is Listed on the Direct Method Statement of Cash