On a statement of cash flows using the indirect format,amortization of the discount on a note payable is:

Question

Quizplus · Accepted Answer

Amortization of the discount on a note payable is a non-cash expense. In the indirect method of preparing the statement of cash flows, non-cash expenses are added back to net income in the operating activities section to adjust for the fact that they reduced net income but did not involve an outflow of cash.

On a Statement of Cash Flows Using the Indirect Format,amortization