Depreciation expense is usually subtracted as an operating expense to calculate budgeted ending cash on hand.

Name: Depreciation expense is usually subtracted as an operating expense to calculate budgeted ending cash on hand.
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Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense and is therefore not subtracted from cash on hand when calculating budgeted ending cash. It is instead included in the calculation of net income, which then impacts the overall cash flow statement.

Depreciation Expense Is Usually Subtracted as an Operating Expense to Calculate