Explain Why Depreciation is Considered in Determining Cash Flows

Business & Finance
Tutor: None Selected Time limit: 1 Day

 If depreciation expense is a noncash charge, why do we consider it when determining cash flows because depreciation expense reduces taxable income, so reduces the amount of taxes paid because depreciation expense reduces net income
Sep 2nd, 2014

because we added it into net income when making an indirect statement of cash flow.

Sep 2nd, 2014

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Sep 2nd, 2014
Mar 28th, 2017
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