A company's income statement reports depreciation expenses of $30,000. If the company uses the direct method to prepare the statement of cash flows, how will the depreciation expense be reported on the statement?

Question

Quizplus · Accepted Answer

Under the direct method, depreciation expense is not reported on the statement of cash flows because it is a non-cash expense. The direct method focuses on actual cash transactions.

A Company's Income Statement Reports Depreciation Expenses of $30,000