Amortization expense is not listed on a direct-method cash flow statement since this item has no effect on cash.

Name: Amortization expense is not listed on a direct-method cash flow statement since this item has no effect on cash.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Amortization expense is a non-cash expense and does not affect the cash balance of a company directly. Therefore, it is not included on the direct method cash flow statement which shows the cash inflows and outflows during a specific period.

Amortization Expense Is Not Listed on a Direct-Method Cash Flow