Depreciation Expense on factory equipment would be reported in the statement of cash flows prepared by the indirect method in:
A)the operating activities section.
B)the financing activities section.
C)the investing activities section.
D)None of the above

Question

Quizplus · Accepted Answer

Depreciation expense on factory equipment is a non-cash item that is added back to net income in the operating activities section of the statement of cash flows prepared by the indirect method. This is because depreciation is a non-cash expense and does not impact the actual cash flows of the business.

Depreciation Expense on Factory Equipment Would Be Reported in the Statement