What effect does depreciation have on an entitys cash flow? Why is depreciation added back to net

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What effect does depreciation have on an entity’s cash flow? Why is depreciation added back to net income when the indirect method of calculating cash from operations is used?

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Financial Accounting A Critical Approach

ISBN: 978-1259066528

4th edition

Authors: John Friedlan

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Question Posted: Feb 26, 2015 11:30 AM

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What effect does depreciation have on an entitys cash flow? Why is depreciation added back to net

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Depreciation has no effect on an entitys cash flow Its just th...View the full answer

Financial Accounting A Critical Approach

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