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:

Sure Thing

A situation or outcome that is guaranteed to occur or a bet that is certain to win, often used in the context of investments or decisions with a predictable outcome.

Weighted Average

Weighted average is a calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to some of the numbers more than others.

Expected Value

The predicted value of a variable, calculated as a sum of all possible values each multiplied by the probability of its occurrence.

Unit Of Measure

A standard quantity used in measuring and expressing the quantity of an element, substance, or phenomenon.