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Hi Sir,
Is each of the following statements true or false?
The amortization charge for the year on intangible assets will appear as an item under ‘Cash flows from operating activities in a statement of cash flows.
The answer given is true. May you confirm?
Depreciation is under “cash flows from operating activities” in Open tuition lectures, If there is no depreciation but only amortization given, can amortization “be in the place” of depreciation?
Amortisation and depreciation are effectively the same thing and are treated in the same way in the Statement of Cash Flows.
The statement you quote is false. If it a bit of a trick question because although the depreciation is shown in the statement (assuming we are using the indirect method) it is only there as effectively part of the workings in arriving at the cash flow from operating activities. It is not there as a separate item in its own right because it is not a cash flow.
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