Depreciation expense is not reported on the statement of cash flows under the direct method.

Name: Depreciation expense is not reported on the statement of cash flows under the direct method.
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Quizplus · Accepted Answer

Under the direct method, depreciation expense is not separately reported on the statement of cash flows, as it is a non-cash item. However, it may still indirectly affect cash flows through its impact on income taxes and net income.

Depreciation Expense Is Not Reported on the Statement of Cash