Under the indirect method of preparing a statement of cash ows, why is depreciation expense added to

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Under the indirect method of preparing a statement of cash ﬂows, why is depreciation expense added to net income when determining net cash ﬂow from operating activities?

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Core Concepts of Accounting

ISBN: 978-0470499474

2nd edition

Authors: Cecily A. Raiborn

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Question Posted: Mar 27, 2015 06:45 AM

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Under the indirect method of preparing a statement of cash ows, why is depreciation expense added to

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Preparing the SCF on an indirect basis requires converting accrual net income to a cash only ...View the full answer

Core Concepts of Accounting

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