Explain Why Depreciation is Considered in Determining Cash Flows

Anonymous
timer Asked: Sep 2nd, 2014
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Question Description

 If depreciation expense is a noncash charge, why do we consider it when determining cash flows? 

Tutor Answer

Ian N
School: UC Berkeley

It is added considered  because it is an accounting expense, not a cash expense.

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Anonymous
Goes above and beyond expectations !

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