Which of the following is a noncash expense added back to net income in determining cash flowfrom operating activities?

Question

Quizplus · Accepted Answer

Amortization is a noncash expense that represents the gradual reduction in the value of an intangible asset. Since it does not involve an actual cash outflow, it is added back to net income in determining cash flow from operating activities. Interest, administration, and selling expenses all involve actual cash outflows and are therefore not added back to net income.

Which of the Following Is a Noncash Expense Added Back