Accounting for IGCSE & O level - Accounting Procedures (Section 14 - No. 13)
What is the impact of a depreciation expense on the statement of cash flow?
Decreases cash flow from operating activities.
Increases cash flow from operating activities.
Has no impact on cash flow.
Decreases cash flow from investing activities.
Explanation
Depreciation is a non-cash expense, and it is added back to net income on the cash flow statement.
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