Advertisements
Advertisements
प्रश्न
Why do we add back depreciation to net profit while calculating cash flows from operating activities?
अति संक्षिप्त उत्तर
Advertisements
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.
shaalaa.com
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
