In the statement of cash flows, the amount of depreciation expense is added back to net income because:?

up vote 0 down vote favorite

personal-finance

asked Oct 8 '15 at 06:00

Unnamed User
1 0 0 0

Can you answer these questions?

	ice cream palor ideas?names,desing,etc.?
	Liberals say that Obama isn't a Muslim, then why do they think he swore his oath of office on the Korean?
	I want to study in England... How can I do that?

Your Answer

Related Content

	Cash flow statement In financial accounting, a cash flow statement, also known as statement of cash ... methods; indicate the amount, timing and probability of future cash flows. The cash flow statement has been adopte...
	Chtr 12 Statement of Cash Flows The statement of cash flows reports the cash receipts, cash payments, and the net ... Operating activities is the most important category because it shows the cash ... . in the current income statement helps the reader determine the amount of cash ... Step 2: Add back (to net income) noncash expenses, such as depreciation ...
	Cash Flow Recipe--Model of Indirect Method The Indirect Method -- a Recipe for Calculating Cash Flow from Operations ... The only exception to this was Depreciation Expense, which reduced net income, but had no ... amortization) must be added back to net income to get to cash flow. ... then the amount of the accounts receivable increase must be subtracted from net ...

Related Questions

	Want to buy a stroller from the USA, how much duty and taxes do I pay when entering Canada?
	How to cash a check in the U.S. From Canada?
	Unable to access HDFC Net Banking ,Getting Inavlid Customer ID?

Related Content

	How does depreciation affect cash flow? - Questions & Answers ... Thus, depreciation affects cash flow by reducing the amount of cash a ... as a taxable expense, which thereby reduces the amount of cash outflow for tax ... However, depreciation only exists because it is associated with a fixed asset. ... Thus, the net positive affect on cash flow of depreciation is nullified by ... ..
	Statement of Cash Flows The Statement of Cash Flows is prepared using an activity format where items are ... Net Income + Depreciation expense + Losses - Gains - Increases in current ... Therefore, it is added back to put net income on a cash basis. 2. ... An increase in accounts receivable increases net income because of the associated revenue.
	True b. Depreciation expense is added back to net income when ... The 20x4 income statement disclosed equipment depreciation expense of ... Show how the sale of equipment would appear on a statement of cash flows ...
	Depreciation in cash flow \| Depreciation and amortization \| Khan ... Now I say it's simplified because this is a very simplified income statement ... So in any of these periods, the depreciation expense; should be added back to the ... to add that $20K back to the net profit to balance to that $50K in cash received. ... .. cash flow statement (starting cash) at 0:12, was just the amount of capital tha...
	Cash Flow Statement - expenses - Reference For Business This is an important indicator of financial soundness because it is possible for a ... of cash to provide the reader with an understanding of the amount of cash a ... . Depreciation expense is added back to net income on a cash flow statement ...
	Statement of Cash Flows - Back to Basics, Part 15 The statement of cash flows contains three events: operating activities, investing ... net income to net cash provided by operating activities: Depreciation and ... These figures are added back to net income because they are expenses that do not ...