If Depreciation Is Added Back to Operating Cash Flow and to Additions

question 170

Essay

If depreciation is added back to operating cash flow and to additions to fixed assets, does this process add deprecation back twice? Is it not double-counting?

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Definitions:

Earth's Atmosphere

The layer of gases surrounding Earth, retained by Earth's gravity, which protects life by absorbing ultraviolet solar radiation, warming the surface through heat retention, and reducing temperature extremes between day and night.

Nitrogen

Nitrogen is a chemical element with the symbol N and atomic number 7; it is a colorless, odorless gas that is a fundamental part of amino acids and nucleic acids, essential for life.

Carbon Dioxide

A gas without any color or smell, emanating from the burning of compounds containing carbon and the respiratory process, absorbed by vegetation in the process of converting light into energy.

Carbon Cycle

The series of processes by which carbon compounds are interconverted in the environment, chiefly involving the incorporation of carbon dioxide into living tissue by photosynthesis and its return to the atmosphere through respiration, the decay of dead organisms, and the burning of fossil fuels.