Explain why depreciation expenditure, depletion expense, and amortization expense are added to net income in the operating activities part of the statement of cash flows when the indirect method is used.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 8Q: Why is depreciation an addition in the operating section of the statement of cash flows, when...
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Explain why depreciation expenditure, depletion expense, and amortization expense are added to net income in the operating activities part of the statement of cash flows when the indirect method is used.

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