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why depriciation is added in operating …

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why depriciation is added in operating activity?

    • Posted by Kanika Garg 8 years, 2 months ago

    CBSE > Class 12 > Accountancy
    • 2 answers

    Vinay Bhadana 8 years, 2 months ago

    Because it is a non cash item and non cash transaction are not taken into consideration in the cash flow statement

    0Thank You

    Md Kashif 8 years, 2 months ago

    Because its a non cash expense.it has not effected the flow of cash and we have deducted it while calculating net profit so it is added again.

    0Thank You

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