Question: When preparing a statement of cash flows using the indirect method, why is depreciation added back to net income within the operating activities section.

When preparing a statement of cash flows using the indirect method, why is depreciation added back to net income within the operating activities section.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!