When the Indirect Method Is Used to Determine Operating Cash

question 46

Multiple Choice

When the indirect method is used to determine operating cash flows,how is depreciation expense recorded on the statement of cash flows?

• A) as an operating activity
• B) as an investing activity
• C) as a financing activity
• D) as a noncash investing and financing activity

---

Definitions:

Understanding of Reality

The ability to perceive, interpret, and respond to the external world in an accurate and coherent manner.

Genetically Determined

Traits or conditions that are influenced by genes inherited from one's parents.

Complementary Characteristics

Traits or qualities that, when combined, enhance mutual effectiveness or value.

Opposites Attracting

The popular notion that individuals with differing personalities, interests, or physical traits are often drawn to each other, forming a complementary relationship.