Depreciation expense is not reported on the statement of cash flows when prepared using the direct method.

Name: Depreciation expense is not reported on the statement of cash flows when prepared using the direct method.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense and is added back to net income in the operating activities section of the statement of cash flows when prepared using the indirect method. However, when prepared using the direct method, depreciation expense is not reported separately.

Depreciation Expense Is Not Reported on the Statement of Cash