Depletion will appear on the statement of cash flows as a financing activity.

Name: Depletion will appear on the statement of cash flows as a financing activity.
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Question

Quizplus · Accepted Answer

Depletion is not classified as a financing activity in the statement of cash flows. It is considered an operating activity, as it relates to the use of natural resources in a business operation. Financing activities include transactions related to raising or paying back funds, such as issuing and repaying debt or equity.

Depletion Will Appear on the Statement of Cash Flows as a Financing