Amortization Expense Is Not Listed on a Direct-Method Cash Flow

question 210

True/False

Amortization expense is not listed on a direct-method cash flow statement since this item has no effect on cash.

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Definitions:

Mass Services

Services provided on a large scale to a broad population where individual customer interactions are relatively uniform and low in complexity.

Process Costing

A costing method used in industries where production is continuous, assigning costs to units of output on the basis of average costs for each process or department.

Labour

Labour refers to human work effort, both physical and mental, used in the production of goods and services.

Back Office

The back office consists of the administrative and support personnel in a company who are not client-facing, responsible for functions such as settlements, clearances, record maintenance, and IT services.