In a Statement of Cash Flows, Which Category Includes Depreciation

question 53

Multiple Choice

In a statement of cash flows, which category includes depreciation expense as a line item?

• A)operations
• B)investments
• C)financing
• D)None of these; depreciation is a noncash expense.

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Definitions:

Economic Precepts

Basic principles or theories that guide the analysis and management of economic activities.

Shareholder Model

A theory of corporate governance focusing on the interests of shareholders, prioritizing financial returns over broader social or ethical considerations.

Stakeholder Model

A theory of organizational management and business ethics that addresses morals and values in managing an organization, centering on the interests of all stakeholders.

Corporate Governance

The system by which companies are directed and controlled, involving the mechanisms, processes, and relations used by various parties to control and to operate corporations.