Depreciation is added back to net profit in a Statement of Cash Flows because it is:
A) A non-cash expense
B) An investing activity
C) A non-current asset
D) Not included in net profit

Question

Quizplus · Accepted Answer

Depreciation is added back to net profit in the Statement of Cash Flows because it is a non-cash expense that reduces net profit on the income statement but does not involve an actual outflow of cash.

Depreciation Is Added Back to Net Profit in a Statement