Depreciation Expense is reported on the statement of cash flows only when using the direct method of preparing a statement of cash flows.

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Hanshul Jhanginia · Accepted Answer

Final Answer : False, Explanation :  Depreciation Expense is not reported on the statement of cash flows directly under either the direct or indirect method. Instead, under the indirect method, it is added back to net income in the operating activities section because it is a non-cash expense that reduced net income.

Depreciation Expense is reported on the statement of cash flows only when using the direct method of preparing a statement of cash flows.

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