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a. Report all assets at gross carrying amount b. Ensure depreciation has been properly reported c. Reverse non cash charges deducted from net income. d. Calculate net carrying amount.
Yes Depreciation is added to Net Income in the Cash Flow Statements. All non-cash items are added/deducted (based on whether the same was deducted/added to derive at the net profit figure) from the net Income...Hence "C" is the answer - c. Reverse non cash charges deducted from net income.
C. Reverse non cash charges deducted from Net Income.
C
(C) the right answer
c is the answer.
Yes, Depreciation expense is reversed or added back to net income while preparing Statement of Cash Flows (under Cash Flows from Operating Activities).
Option C is the right answer as non cash items are reversed.
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