In a Statement of Cash Flows, Which Category Includes Depreciation

question 4

Multiple Choice

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

• A)Operations
• B)Investments
• C)Financing
• D)None of the above; depreciation is a non-cash expense.

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Definitions:

Foreign Currency

The money or legal tender issued by a country's government, which is used and traded internationally outside of the issuing country.

Nonmonetary Assets

Assets that are not in the form of cash or cannot be quickly converted into cash, such as property, plant, and equipment.

Current Exchange Rate

The rate at which one currency can be exchanged for another at present.

Fair Value Method

The Fair Value Method is an accounting strategy used to value certain assets and liabilities at their current market worth, not based on purchase costs or book value.