Using the Indirect Method,the Increase in Accumulated Depreciation Is Added

question 94

True/False

Using the indirect method,the increase in accumulated depreciation is added to net income in the operating section.The increase in accumulated depreciation could be due to a combination of depreciation expense and sales of property,plant,and equipment.Depreciation expense would be added to net income in the operating section.Sales of property,plant and equipment would be reported as a cash inflow in the investing section.

---

Definitions:

Dividends

Funds distributed by a company to its shareholders from its profits.

Modest Dividend

A relatively small or conservative amount paid out to shareholders from a company's earnings.

Implied Constant Growth

A concept in financial modeling that assumes a company or economy will continue to grow at a consistent rate indefinitely, impacting valuation methods.

Kyocera

A multinational corporation based in Japan, specializing in ceramic and electronic products.