In a Statement of Cash Flows (Indirect Method),depreciation Expense Should

question 3

Multiple Choice

In a statement of cash flows (indirect method) ,depreciation expense should be presented as:

• A)a cash flow from financing activities.
• B)a cash flow from investing activities.
• C)a deduction from net income.
• D)an addition to net income.
• E)a financial activity.

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Definitions:

Equity Theory

A theory in social psychology that explains how individuals perceive the fairness of their input-output ratios in comparison to others, affecting their motivation and satisfaction.

Outcome

The result or consequence of an action, process, or situation, often used to evaluate effectiveness.

Fringe Benefits

Fringe benefits are additional compensations given to employees beyond their regular salaries or wages, such as health insurance, paid vacation, and retirement plans.

Equity Theory

A theory in social psychology that explains how perceptions of fairness influence motivation, satisfaction, and behavior in interpersonal relationships.