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प्रश्न
Why do we add back depreciation to net profit while calculating cash flows from operating activities?
अति संक्षिप्त उत्तर
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उत्तर
Depreciation is a non-cash expense debited to the profit and loss account but does not result in a cash outflow. Therefore, it is added back to net profit while calculating cash flow from operating activities using the indirect method.
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