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Where do I reflect accumulated amort. closing costs on my cash flow statement?


I realize it to be under operating activities. Is it included in Depreciation & Amortization or other Assets?

asked Apr 10 in General Accounting Discussion by Richard

1 Answer

0 votes
Amortization is a non-cash expense. Therefore, like all non-cash expenses, it will be added to the net income when drafting an indirect cash flow statement. The same applies to depreciation of physical assets as well.

When using the direct method of cash flows,it is not considered, Since amortization is not a cash expenditure or inflow.
answered Apr 11 by MHAGIG Level 2 Member (4,000 points)


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