Is the amortization of a long term asset such as a building or vehicle considered to be a cash flow? If it is, is it cash from operations or investing?
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Assets such as those mentioned in your question are depreciated, not amortized. (Virtually the same concept though). Bonds and loans are amortized, assets are depreciated.
But anyways, yes, those depreciation costs are non-cash expenses and get added back to the beginning net income figure on a cash flow statement prepared using the indirect method in the operations section.
Assets such as those mentioned in your question are depreciated, not amortized. (Virtually the same concept though). Bonds and loans are amortized, assets are depreciated.
But anyways, yes, those depreciation costs are non-cash expenses and get added back to the beginning net income figure on a cash flow statement prepared using the indirect method in the operations section.
capwest5a | Feb 11, 2010 | Reply