When Using the Direct Method,how Is Depreciation Expense Recorded on the Statement

question 28

Multiple Choice

When using the direct method,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)Not reported on the statement of cash flows

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Definitions:

Title Insurance Policies

Contracts that protect buyers and lenders from losses due to defects in a property's title.

Mortgagees

Lenders or financial institutions that provide funds for a mortgage loan, holding the property as collateral until the loan is repaid.

Tenants

Individuals or entities that hold a leasehold interest in a property, granting them the right to occupy and use the property according to the terms of their lease agreement.

Assumes a Mortgage

The act of taking on the obligation to pay an existing mortgage, typically as part of a property purchase.