In determining net cash flow from operating activities using the indirect method, why must we add depreciation

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In determining net cash flow from operating activities using the indirect method, why must we add depreciation back to net income? Give an example of another item that is added back to net income under the indirect method.

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Financial Accounting

ISBN: 9781618533111

6th Edition

Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman

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Question Posted: Oct 15, 2021 03:32 AM

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In determining net cash flow from operating activities using the indirect method, why must we add depreciation

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Under the indirect method depreciation is added to net i...View the full answer

Financial Accounting

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