In the direct method, why is depreciation expense not reported in the cash flows from operating activities

Question:

In the direct method, why is depreciation expense not reported in the cash flows from operating activities section?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting Principles

ISBN: 9781118566671

11th Edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

See More Books

Question Posted: Dec 27, 2011 09:11 AM

See More Questions

Direct versus indirect method of determining cash flows from operating activities Security Services, Inc. (SSI), recognized $2,400 of sales revenue on account and collected $1,900 of cash from...
5. Paul borrows $136 000. He agrees to make monthly payments for the next 20 years. The interest rate being charged is 6.6% /a compounded monthly. How much will Paul have to pay each month? How much...
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Macro Soft Corporation. Required: Prepare the cash flows from operating...
Simplify each expression. Assume that all variables represent nonzero real numbers. 52
Chambers Company has seven operating segments but only four (One, Two, Three, and Four) are of significant size to warrant separate disclosure. As a whole, the segments generated revenues of...
A new model of home selling price has been developed by a realty company. One way to assess if the coefficient estimates have been properly recorded is to construct a simple regression model of the...
Describe the differences between domestic and international HRM.
Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April: a. On April 1, Mathis Company purchased merchandise on account from...
JL Lumber has a debt-equity ratio of .47. The firm's required return on assets is 11.8 percent and its current cost of equity is 14.23 percent. What is the firm's pretax cost of debt? Ignore taxes.
The trial balance of Pacilio Security Services Inc. as of January 1, 2021, had the following normal balances: Cash ..................... $113,718 Petty cash ................... 100 Accounts...
Why is it advantageous to use a worksheet when preparing a statement of cash flows? Is a worksheet required to prepare a statement of cash flows? Discuss.
Purpose: Use the Internet to view SEC filings. Steps 1. Type in a company name. 2. Choose Profile. 3. Choose SEC Filings. (This will take you to Yahoo-Edgar Online.) Instructions Answer the following...
What are the three legal forms of business organization? What are their advantages and disadvantages?
NC owns 40% of the equity shares in MW. KL owns the remaining 60% of MW's equity shares. Unanimous consent is required by NC and KL for all key operating and financial decisions relating to MW. NC...
Let's look at some relatively recent news here: What is Theranos? Who is Elizabeth Holmes? How do Theranos, Elizabeth Holmes and the SEC all come together? Did Elizabeth Holmes agree to settle the...
Examining pay cheques by employee class can be a very useful analytical procedure. You are given payroll data for an automotive manufacturer. You use data visualization to analyze if gross and net...
How was franchise class 14-straight line CCA calculated for 2020-2022? provide calculation
Effective for tax years after December 31, 2026, taxpayers eligible for a Saver's Match of $100 or more will be paid how?
Design the interface circuit in Figure P3=71 so that $R$ OUT $=50 \Omega$ and the voltage delivered to the $50-\Omega$ load is $v=$ 2.5V. 15 V + 100 (2 Ww RIN Interface. circuit ROUT 50 22
Chris Zulliger was a chef at the Plaza Restaurant in the Snowbird Ski Resort in Utah. The restaurant is located at the base of a mountain. As a chef for the Plaza, Zulliger was instructed by his...
Solve Problem using augmented matrix methods. 4x 1 + 6x 2 = 8 6x 1 9x 2 = 12
Brees Company has two production departments, Fabricating and Assembling. At a department managers meeting, the controller uses flexible budget graphs to explain total budgeted costs. Separate graphs...
Bush Companys organization chart includes the president; the vice president of production; three assembly plantsNew Orleans, Houston, and Mobile; and two departments within each plantMachining and...
Maguire Manufacturing Inc. has three divisions which are operated as profit centers.Actual operating data for the divisions listed alphabetically are as follows. Instructions(a) Compute the missing...
Solve (2.4 x 10-5) X 875 (2.5 x 107) x (2.8 x 107)
assume there are no outliers. Draw the boxplot for the following frequency table. You may X f rf cf crf 3 7 0.1228 7 0.1228 4 11 0.1930 18 0.3158 5 9 0.1579 27 0.4737 618 6 0.1053 33 0.5789 10 0.1754...
Find the partial derivative of the regularized least squares problem: {) (w + x) (wo + w x ( ) + w x ( ) } + |/\||[w1, w2]|| with respect to wo, w, and w2. Although there is a closed-form solution to...

In the direct method, why is depreciation expense not reported in the cash flows from operating activities

Question:

Step by Step Answer:

Cash flow statement deals with cash flows include cash and cash equivalents It shows the incoming an...View the full answer

Accounting Principles

Students also viewed these Accounting questions