Depreciation is added back on the statement of cash flows in which of the following sections?
A) Financing Activities
B) Purchasing Activities
C) Investment Activities
D) Operating Activities

Question

Quizplus · Accepted Answer

Depreciation is added back to the net income in the Operating Activities section of the statement of cash flows because it is a non-cash expense that has been deducted from net income in the income statement.

Depreciation Is Added Back on the Statement of Cash Flows