Depreciation expense is the most common adjustment under the indirect method because it does not cause cash to increase or decrease.

Name: Depreciation expense is the most common adjustment under the indirect method because it does not cause cash to increase or decrease.
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Question

Quizplus · Accepted Answer

Depreciation expense is added back to net income in the operating activities section of the cash flow statement under the indirect method because it is a non-cash expense that reduces net income but does not affect cash flow.

Depreciation Expense Is the Most Common Adjustment Under the Indirect