Under the direct method,depreciation expense is treated as an outflow in the Investing Activities section of the statement of cash flows.

Question

Quizplus · Accepted Answer

Under the direct method, depreciation expense is not reported in the Investing Activities section of the statement of cash flows. Instead, it is shown in the Operating Activities section as a non-cash expense that is added back to net income to calculate cash flows from operating activities.

Under the Direct Method,depreciation Expense Is Treated as an Outflow