How is depreciation shown on the statement of cash flows?
A) as cash outflow under operating activities
B) as cash inflow under operating activities
C) as cash outflow under investing activities
D) as cash inflow under investing activities

Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense and is added back to net income in the operating activities section of the cash flow statement to reconcile net income to net cash provided by operating activities.

How Is Depreciation Shown on the Statement of Cash Flows