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28.04.2012

depreciation is part of operating expenses

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Q: Is depreciation a non operating expense?
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Related questions

Is depreciation expenses a non-cash expense?

is depreciation expense a non-cash expense


Is depreciation an operating expense?

Depreciation is an operating expense but does not involve any cash flow. like salaries,rent insurance etc it is included in the P/L accounts.It is considered as operating because machinery/equipments or any property diminishes its value day by day.


Does a depreciation expense increase or decrease cash flow?

Neither. Depreciation is a non-cash expense.


How does depreciation affect?

Indirectly. Technically it doesn't, depreciation is a non-cash expense. Depreciation expense does, however show up as a line item on the cash flows statement as an adjustment to operating income to derive net cash from operations... you add it back to income.


How does depreciation affect cashflow?

Indirectly. Technically it doesn't, depreciation is a non-cash expense. Depreciation expense does, however show up as a line item on the cash flows statement as an adjustment to operating income to derive net cash from operations... you add it back to income.


What is kind of operating expense is depreciation selling expense or general administrative expense?

Examples of operating expense ==> depreciation expense of a machine, impairment of goodwill Example of selling expense ==> advertising Example of general administrative expense ==> office expense


Is loan interest is operating expense or non operating expenses?

Non-Operating Expense


Should restructuring charges be classified as an operating expense or as a non operating expense?

Non-operating I believe, because they are non-recurring


The cash flow from depreciation can be described as?

Depreciation does not create cash flow. It is a non-cash expense.


Does office depreciation expense go on income statement?

yes, under operating expenses


When using the Indirect Method how is depreciation expense recorded on the Statement of Cash Flows?

Operating Activity


Why is depreciation added to net income in the Operating Activities category of the statement of cash flows when the indirect method is used?

Depreciation is added back to net income to arrive on cash flow from operating activities because depreciation itself don't cause any inflow or outflow of cash that's why it is added back to net operating income.