Question: Under the direct method, why is depreciation expense not reported in the operating activities section?

Under the direct method, why is depreciation expense not reported in the operating activities section?

Step by Step Solution

★★★★★

3.48 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Depreciation expense is not listed in the direct method op... View full answer

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

Document Format (1 attachment)

Word file Icon

1208-B-C-A-P-C(2154).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Q:

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

Q:

Why is depreciation expense typically reported as a direct expense in the government-wide statement of activities?

Q:

Why is depreciation expense added to net income (indirect method) on the statement of cash flows?

Q:

To Be Solved By rluxmi, Hi rluxmi are you available to help? Lockheed Martin Proprietary Information The primary purpose of the statement of cash flows is to provide information about the cash...

Q:

E13-4. Gutierrez Company reported net income of $225,000 for 2015. Gutierrez also reported depreciation expense of $45,000 and a loss of $5,000 on the disposal of equipment. The comparative balance...

Q:

During 2 0 2 2 , Slivowitz Doubleday Company converted $ 1 , 7 0 0 , 0 0 0 of its total $ 2 , 0 0 0 , 0 0 0 of bonds payable into common stock. Indicate how the transaction would be reported on a...

Q:

I need help answering the following questions that are attached. Any help is greatly appreciated. Thanks in advance. Problem 24-1 Your firm has been engaged to examine the financial statements of...

Q:

I need help answering the following questions that are attached. Any help is greatly appreciated. Thanks in advance. Problem 24-1 Your firm has been engaged to examine the financial statements of...

Q:

COMPLETION STATEMENTS A statement of cash flows summarizes the operating, ____________, and ___________ activities of an entity. The cash effects of selling goods and services appears in the...

Q:

The income statement of Whitlock Company is presented here. WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2020 $7,700,000 Sales revenue Cost of goods sold Beginning inventory...

Q:

Prepare the necessary period-end adjustment entries for each individual case listed below. Case 1 The Sleater-Kinney Company started the year with a $3,000 balance in the Materials account.$8,500...

Q:

Read the case study Cirque du Soleil Case Analysis and write Summary of Background and Facts

Q:

The second Xenoravon module takes an integer input and outputs a value that resembles the length of a Collatz Conjecture sequence. Although it isn't likely the Xenoravons know anything about Lothar...

Q:

Assume for the following problems that work continues during weekends. a. A task is planned to start on April 30 and takes 20 days to complete. The actual start date is May

Q:

Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Purchasing ...... $40,000 Setups .......... 37,500 Engineering ...... 45,000 Other .............

Q:

Foto-Fast Copy Shop provides a variety of photocopying and printing services. On June 5, the owner invested in some computer-aided photography equipment that enables customers to reproduce a picture...

Q:

Decisions Cherise Ortega, marketing manager for Romer Company, was puzzled by the outcome of two recent bids. The companys policy was to bid 150 percent of the full manufacturing cost. One job...

Q:

This is the Midterm Exam #2 for Math 227 This wxam is on Canvas Module: Probability (Sections 05, 06, and 07),Canvas Module: Discrete Probability Distributions (Sections 08 and 09) &Canvas Module:...

Q:

Business Decisions Research the different methods of business decision making. Present the best method you have found. Develop a business financial problem and use the method you have chosen to...

Q:

Suppose you short-sell 100 shares of IBM, now selling at $200 per share. What is your maximum possible loss? What happens to the maximum loss if you simultaneously place a stop-buy order at $210?...