Depreciation is shown only when using the direct method of preparing a statement of cash flow.

Name: Depreciation is shown only when using the direct method of preparing a statement of cash flow.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

Depreciation can be shown under both the direct and indirect method of preparing a statement of cash flow. Under the direct method, it is included in operating activities as a separate line item while under the indirect method, it is added back to net income in the operating activities section.

Depreciation Is Shown Only When Using the Direct Method of Preparing