When Using the Direct Method, How Is Depreciation Expense Recorded

question 180

Multiple Choice

When using the direct method, how is depreciation expense recorded on the statement of cash flows?

• A) Operating activity
• B) Investing activity
• C) Financing activity
• D) Not reported on the statement of cash flows

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Definitions:

Labor Supply Data

Information related to the available workforce in a particular market or economy, including the number of individuals willing to work at various wage levels.

Marginal Product

The additional output resulting from the use of one more unit of a production input, holding all other inputs constant.

Monopsony

A market condition where there is only one buyer facing many sellers, giving the buyer significant power over prices and terms of exchange.

Product Market

The marketplace where final goods or services are offered to consumers, businesses, and other entities by producers and suppliers.