Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

why is depreciation added back to the net income in the indirect method of calculating the net cash flow from operating activities? A. Depreciation is

why is depreciation added back to the net income in the indirect method of calculating the net cash flow from operating activities?
A. Depreciation is an income
B. It is a non-cash expense
C. there is outflow of cash when depreciation is calculated
D. all expenses are added back to net income
E. it indicates that the company has paid off its debts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accountancy And The Changing Landscape Of Integrated Reporting

Authors: Ioana Dragu

1st Edition

1522536221, 9781522536222

More Books

Students also viewed these Accounting questions

Question

How can positive self-talk help you change a bad habit?

Answered: 1 week ago

Question

Define Administration?

Answered: 1 week ago