Why Is Depreciation Considered in Cash Flow If It Is

question 55

Essay

Why is depreciation considered in cash flow if it is not a cash expense?

---

Definitions:

Financial Treatment

The method applied in accounting and finance to process, present, or manage financial transactions and their impact on financial statements.

Investor Ownership

A form of ownership where investors own shares or stakes in a company, giving them certain rights and potentially a share in the profit.

Commission

Commission refers to a fee paid for services or a percentage of sales earned by sales employees or agents on the transactions they facilitate.

Cash Dividends

A form of profit distribution by a corporation to its shareholders, paid in cash from the company's current or retained earnings.