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When using the indirect method to prepare the statement of cash flows, depreciation expense should be presented as a(n):

A) Investing and financing activity not affecting cash

B) Addition to net income.

C) Deduction from net income.

D) Cash flow from financing activities.

E) Cash flow from investing activities.

Cash Flow Cash Flow Forecasting Economics
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Question added by Jaishri Navani , Finance Manager , West Zone Fresh Supermarket LLC
Date Posted: 2016/05/08
Upvote (1) Views (12) Followers (3) Answers (2) Report Question
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Ahsan Mianoor
by Ahsan Mianoor , Senior , A.F. Ferguson & Co. (a member firm of the PwC network)

B) Addition to net income as it is a non-cash deduction from the same

FEYISAYO OGUNSANYA
by FEYISAYO OGUNSANYA , ACCOUNTS EXECUTIVE , SWIFT OIL LIMITED

B) Addition to net income.

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