Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in:
A)the operating activities section.
B)the financing activities section.
C)the investing activities section.
D)None of the above.

Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense and is included in the operating activities section of the statement of cash flows. The indirect method starts with net income and adjusts for items that affect cash, including depreciation.

Depreciation on Factory Equipment Would Be Reported in the Statement