Why is depreciation an addition in the operating section of the statement of cash flows, when prepared by the indirect method?

Q: In the calculation of cash flow from operating activities, the loss on the disposal of noncurrent…

A: When the company dispose any asset with a proceeds amount less than the book value of the asset ,…

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

A: Cash flow statement: A cash flow statement is a final accounting statement to understand the change…

Q: Gains and losses on disposals of assets: Why are gains and losses on disposals of assets treated as…

A: Gains and losses on disposal of assets are notional gains and losses reported in the income…

Q: Which of the following will NOT appear in the cash flows from operating activities?

A: Answer:   Option e.

Q: Identify the statement that is correct regarding the statement of cash flows that had been prepared…

A: A cash flow statement (CFS) is prepared by the management with the objective to evaluate the reason…

Q: On the statement of cash flows, depreciation would be classified as? OA financing activity. O An…

A: A cash flow statement consists of 3 sections - operating, financing and investing

Q: When preparing the operating section of the statement of cash flows. using the indirect method…

A: The indirect method for the preparation of the operating section of the statement of cash flows…

Q: Distinguish between the direct method and the indirect method for reporting the results of operating…

A: Statement of cash flows:

Q: Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows,…

A: Under indirect method of cash flow net income that is determined using accrual method of accounting…

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, when utilizing the indirect method, depreciation expenditure, depletion expense, and…

A: Here is the Answer

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

A: The cash flow statement is helpful for the stakeholders that they can identify the organization's…

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

A:

Q: What is the difference between the direct method and the indirect method of presenting the cash flow…

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

Q: Why do we exclude depreciation expense and the gain or loss on sale of an asset from the operating…

A: Operating activities are the activities that are related to the ongoing business of an individual or…

Q: Which of the following statements about the statement of cash flows is correct?   Question 277…

A: Solution: "The direct method is more consistent with the primary purpose of the statement of cash…

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: How does the direct method differ from the indirect method when preparing the operating activities…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: computing net cash flows from operating activities using the indirect method, a gain on the sale of…

A: Cashflow Statement show cash inflow and outflow of cash during a particular period.  It consists of…

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: How much depreciation would the company add to net income on its statement of cash flows?

A: Cash flow statement is part of financial statements of a entity, it shows how the cash has been…

Q: Given the items below, which of the following is a subtraction from net income to arrive at…

A: Cashflow Statement - It is a financial statement which summarizes the amount of cash received and…

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

A: To calculate net cash flow from operating activities using the indirect method, expenses or losses…

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

A:

Q: When preparing a schedule for the calculation of cash generated from operating activities under the…

A: Cash flow statement provided information about the cash inflows and cash outflows of the…

Q: The operating activities section of the Statement of Cash Flows includes everything except:

A: The cash flow statement determines the total cash inflows and outflows that occurred to a business…

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

A:

Q: In the statement of cash flows using indirect method, depreciation is treated as an adjustment to…

A: Depreciation expense represents the cost of tangible asset allocated over the useful life of asset.…

Q: When preparing the operating section of the statement of cash flows, using the indirect method, how…

A: Cash flow is the net sum of funds that an entity receives or disburses during a given time period. A…

Q: Which of the following will be reflected in the "Cash flows from operating activities" of a…

A: Cash flow statement is a statement which shows all cash inflows and cash outflows of the business…

Q: Indicate whether each of the following items would be added or subtracted from net income in…

A: Indirect method is that method where cash from operating activities is calculated by non cash…

Q: Any gain or loss from the sale of equipment is reported in the operating activities section of the…

A: Sale and Purchase of Assets is an investing Activity. The sale proceeds of Equipment is reported as…

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

A: In calculating the net cash flow from operating activities, we generally add back cash outflow, that…

Q: What are some of the grounds for reporting a statement of cash flows using the indirect…

A: The Answer:

Q: n preparing cash flows provided by operating activities using the indirect method, which of the…

A: Cash flows statement provides summary of cash flows from firm's operating, investing and financing…

Q: To account for cash flows from operational operations, the indirect method adds depreciation…

A: Here is the Answer

Q: Which of the following will be reflected in the "Cash flows from operating activities" of a…

A: Cash flow from the operating activities refers to the inflows and outflows of the cash in the entity…

Q: In the operating activities portion of the statement of cash flows when utilizing the indirect…

A: While calculating Cash flow from Operations using Indirect Method, the starting point is Net Income…

Q: Indicate where the purchase of land for cash would appear, if at all, on the indirect statement of…

A: Only operating activities section appearance will vary between direct and indirect method.

Q: Cash flows from operating activities section would include   a. receipts from the sale of…

A: Answer – Correct answer is c. gains or losses on fixed assets – In indirect method of cash flows,…