Depreciation expenses are to net profit while calculating cash flow from operating activities.

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Solution

The correct option is B added
Cash Flow from Operating Activities = Net income + Non-cash Expenses + Changes in Working Capital.
The non-cash expenses are usually the depreciation and/or amortisation expenses listed on the firm's income statement.

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Similar questions

Depreciation expenses are _________ to net profit while calculating cash flow from operating activities.

Non operating expenses are ___ while calculating operating profit from Net profit.

Non-cash expenses like depreciation, depletion & amortization expense are _______ to net profit before tax under indirect method.

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