Even Though Depreciation, Depletion and Amortization Are Expenses, They Are

question 45

True/False

Even though depreciation, depletion and amortization are expenses, they are considered non-cash transactions and must be subtracted from net income in the operating activities section of an indirect method cash flow statement.

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Definitions:

Motorcycles

Two-wheeled vehicles that are powered by an engine, often used for transportation, recreation, or sport.

Manufacturing Sector

The segment of the economy dedicated to the production of goods through processing, transforming, or assembling raw materials.

Basic Materials

These are raw materials, including minerals, metals, and agricultural products, that are used in the production of goods across various industries.

Finished Products

Goods that have completed all stages of production and are ready for sale or distribution to consumers.