Royer Corporation engaged in this transaction: Amortization of a patent. Assume use of the indirect approach.
Indicate which section, if any, the above transaction would appear in, or relate to, on a statement of cash flows.
A) Schedule of noncash investing and financing transactions
B) Financing activities section
C) Investing activities section
D) Operating activities section

Question

Quizplus · Accepted Answer

Amortization of a patent is considered a non-cash expense and is included in the operating activities section of the statement of cash flows under the indirect approach.

Royer Corporation Engaged in This Transaction: Amortization of a Patent