easy · Principles of Finance
Why does 'Amortization' appear as an add-back in the operating section of the Cash Flow Statement?
- It represents the cash received from the sale of an intangible asset.
- It is the repayment of a loan's principal over time.
- It increases the book value of the firm's goodwill.
- It is a non-cash expense for intangible assets, similar to how depreciation works for physical assets.
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