TB MC Qu. 02-101 Depreciation is a source of cash... Depreciation is a source of cash inflow because Multiple Choice it is a non-cash expense, so it needs to be added back to net income when using the indirect met it supplies cash for future asset purchases. Help Save & it is a non-cash expense, so it needs to be added back to net income when using the indirect method it supplies cash for future asset purchases. it is a tax-deductible cash expense. it is a taxable expense