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1. Depreciation in Indirect Cash Flows

in Chapter 7 (Problem 1 of 7)

What effect does depreciation expense have on the Statement of Cash Flows (indirect method)?

  1. Add to net income in operating activities
  2. Subtract from net income in operating activities
  3. Cash inflow from investing activities
  4. Cash outflow from investing activities
  5. Would not appear on the statement of cash flows
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The Rest Of The Practice Problems

Click Here to View All Chapter 7 Problems at Once View
1 Depreciation in Indirect Cash Flows
You are here. 		Easy
2 Investing Activity Classification Easy
3 Operating Activities, Indirect Method Easy
4 Cash Flows and Gains Moderate
5 Gain on Sale of Equipment Moderate
6 Investing vs Financing Moderate
7 Comprehensive Cash Flow Hard
← Chapter 6

Chapter 7 Videos

1 Cash Flow Overview 6:02
2 Operating Cash Flows 18:41
3 Indirect Method 14:26
4 Investing Cash Flows 5:14
5 Financing Cash Flows 3:17
6 Depreciation in Cash Flows 5:50
7 PPE for Cash Flows 2:39
8 Bringing it All Together 13:57
Chapter 8 →