It should be deducted from operating activities and should be included in investing activities as dealing with assets is a part of investing activities.
Depreciation expenses
When preparing a statement of cash flows using the indirect method, cash flows from operating activities primarily include cash transactions related to the core business operations, such as receipts from customers and payments to suppliers. However, cash flows related to the acquisition or sale of long-term assets, such as property, plant, and equipment, are classified as investing activities, not operating activities. Therefore, any cash flows associated with investing or financing activities should not be included in operating activities on the statement of cash flows.
Unallowable
Get the balance sheet and sererate any financing activities from the operating activities. Financing activities are anything that is interest-bearing like debt, equity investments etc and not part of the business' everyday operations. The reformatted balance sheet should look like this: Operating Activities: Current Assets - Current Liabilities = Net Current Assets + Non Current Assets - Non Current Liabilities = NET OPERATING ASSETS - Financing activities (Net Financial Obligations) = Equity Cash is not an operating asset so the basic equation is: Total Assets - Cash = Operating Assets Total Liabilities - LTD - Current LTD = Operating Liabilities NOA = Operating Assets - Operating Liabilities
ALL income form any source should be considered when calculating income tax.
why should we add indirect taxes and depreciation?
When calculating simple interest, you should first
There are two main types of cash flow statements. The direct method and the indirect method. The direct method is when you start with the opening balance of the bank accounts and show the money in and the money out normally split into categories. The indirect method is where you start off with operating profit and adjust for non cash items so you're left with cash from operations, then you'd show the cash movements from investments, followed by cash movements in balance sheet items such as debtors and creditors. After all that, you should get to the balances on the bank statements.
It depends on who you are, in my opinion it should be direct.
An indirect question should be followed by a question mark (i.e., ?) the same as any other question. Direct: Where does he live? Indirect: Do you know where he lives?
The referee should lower their arm after signaling an indirect free kick once the ball has been kicked and is in play.
Why should you compare activities for applicability