On your cash flow statement, you will need to ________ the amount you deducted from the income statement as a depreciation expense.

Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense that is subtracted from the income statement to reflect the decrease in the value of an asset over time. However, since it is not an actual cash outflow, it needs to be added back to the net income on the cash flow statement to show the actual cash generated from operations. Therefore, the correct choice is to add back the amount deducted as a depreciation expense.

On Your Cash Flow Statement, You Will Need to ________