Why is depreciation not included in expenses

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topcat
topcat Registered Posts: 452
in AAT Level 4 (Level 8 in Scotland)
Just done a cash flow forecast 'expenses are paid in the month after they are incurred expenses include £200 per month depreciation ' In the answer they have taken the depreciation out of expenses why?

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  • KernowAccountant
    KernowAccountant Registered Posts: 103 Epic contributor 🐘
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    It isn't a cash flow but an accounting adjustment.
  • topcat
    topcat Registered Posts: 452
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    Of course I am having one of those days when I get everything wrong, thank you

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