When preparing the statement of cash flows by the indirect method,if accumulated depreciation increases the difference is:
A)added to net income.
B)added to investments.
C)deducted from net income.
D)not considered in the statement of cash flows using the indirect method.

Question

Quizplus · Accepted Answer

An increase in accumulated depreciation is added back to net income in the statement of cash flows when using the indirect method because it is a non-cash expense that reduced net income on the income statement.

When Preparing the Statement of Cash Flows by the Indirect