Under the direct method, amortization expense is added to net income.

Name: Under the direct method, amortization expense is added to net income.
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Quizplus · Accepted Answer

Under the direct method, amortization expense is not added to net income because the direct method involves listing the cash flows from operating activities as actual cash receipts and payments, and amortization expense is a non-cash expense that does not affect cash flow.

Under the Direct Method, Amortization Expense Is Added to Net