In the operating activities portion of the statement of cash flows when utilizing the indirect method, explain why depreciation expenditure, depletion expense, and amortization expense are added to net income in the operating activities section of the statement of cash flows.

Q: Explain how depreciation expense is reported in the Statement of Cash Flows using the indirect…

A: Definition: Statement of cash flows: Statement of cash flow is a financial statement that shows the…

Q: Which of the following is excluded when projecting future cash flows for the purpose of determining…

A: As per International Accounting Standard 36   Impairment of assets When projecting future cash flows…

Q: Preparation of Cash flow statement operational section - indirect method

A: In cashflow there are 2 methods for calculating operating cash flow, they are: Direct Method…

Q: What is the reporting purpose of the statement of cash flows? Identify at least two questions that…

A: A  cash flow statement is a financial statement that shows how changes occurred in balance sheet…

Q: Explain why depreciation expenditure, depletion expense, and amortization expense are added to net…

A: Depreciation is the wear and tear of the asset which is charged to the profit and loss account…

Q: describe the steps in the preparation of direct and indirect cash fl ow statements, includinghow…

A: Statement of cash flow is a financial statement that shows how changes in balance sheet accounts and…

Q: Determine cash flows from operating activities by the indirect method.

A:

Q: We can separate cash return on assets into: a. Cash flow to sales and return on assets. b. Profit…

A: Cash return on assets is: = Cash flows / Average Assets

Q: Which of the following should be added to net income in calculating net cash flow from operating…

A: Cash flows from operating activities is a section in cash flow statement which shows all income and…

Q: What is unique about reporting current assets? Current assets are reported after they are converted…

A: Current assets can be exchanged for cash within a year.

Q: Explain why depreciation, depletion, and amortization cost are added to net income in the operating…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating…

A: Statement of cash flows: It is one of the financial statement that shows the cash and cash…

Q: When completing the statement of cash flows using the indirect method, an increase in an asset…

A: Cash flows statement: To know the cash position of the company statement of cash flows are prepared.…

Q: Why is depreciation an addition in the operating section of the statement of cash flows, when…

A: Statement of cash flows:   It is one of the financial statements that shows the cash and cash…

Q: Please tell me what statement or statments the following appears on DEPRECIATION EXPENSE   Income…

A: The income statement is drawn to show all the revenues earned and expenses incurred during the…

Q: For purposes of calculating cash given by operations, the indirect approach subtracts depreciation…

A: The Answer:

Q: Can you give some explanation of why Amortization Expense is included as a source of cash in a cash…

A: In indirect  method  of cash flow statement  we add back amortization expense  to net income  in…

Q: The purchase of a long-term asset is classified in the statement of cash flows as a(n) a. Operating…

A:

Q: Determine cash flows from operating activities by the direct method.

A: “As it asked here to find out the cash flows from operating activities by the direct method without…

Q: When using the indirect method of determining net cash flows from operating activities, how are…

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…