When using the direct method,how is depreciation expense recorded on the statement of cash flows?
A)As an operating activity
B)As an investing activity
C)As a financing activity
D)Not reported on the statement of cash flows

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash charge and does not affect cash flow; therefore, it is not reported on the statement of cash flows when using the direct method.

When Using the Direct Method,how Is Depreciation Expense Recorded on the Statement