Answered: In preparing the operating activities…

In preparing the operating activities section of the statement of cash flows by the indirect method, the depreciation expense for the period is added to the net income for the period. O True O False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

In preparing the operating activities section of the statement of cash flows by the indirect method, the depreciation expense for the period is added to the net income for the period. O True O False

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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