Which of the following is TRUE about the c

问题单项选择题

Which of the following is TRUE about the consideration of depreciation in the operations section of a cash flow statement Direct Method Indirect Method（）

A. Considers Considers

B. Considers Does not consider

C. Does not consider Consider

答案

参考答案：C

解析：

The indirect method must add back depreciation expense because the starting point is net income. Since the direct method does not. begin with net income it does not need to consider non-cash expenses such as depreciation.