In Creating a Cash Flow Statement Using the Indirect Method,which

question 99

Multiple Choice

In creating a cash flow statement using the indirect method,which of the following statements is TRUE about depreciation expense?

• A)It is added back to purchases of non-current assets under investing activities.
• B)It is added back as an adjustment to profit in the operating activities section.
• C)It is shown as a negative cash flow under operating activities.
• D)It is shown as a negative cash flow in the investing activities section.

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Definitions:

Resources

The total means available for economic and operational support, including financial assets, personnel, and informational materials.

International Accounting Standards Board

An independent, private-sector body that develops and approves International Financial Reporting Standards (IFRS) to ensure transparency, accountability, and efficiency in financial markets around the world.

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Principles and regulations intended to provide a framework for financial reporting that is consistent across international borders.