When Using the Indirect Method, How Is Depreciation Expense Recorded

question 133

Multiple Choice

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

• A) Operating activity
• B) Investing activity
• C) Financing activity
• D) Noncash investing and financing activity

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Definitions:

Nonrefundable Ticket

A ticket purchase that cannot be returned for a refund, often cheaper than refundable options and common in air travel.

Remainder

The amount left over or remaining after division or allocation.

Alternative

An option or choice that is available as a substitute or replacement for something else.

Market Supply Curve

A graphical representation showing the total quantity of a good that producers are willing to sell at various prices within a given time period.