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Depreciation is regarded as a source of capital because it is a noncash expense on the Income Statement. (see "Understanding Wall Street" 5th ed. by Jefffrey B. Little & Lucien Rhodes - pg 51.)

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Q: Is depreciation an internal source of capital?
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Why is depreciation always positive on a cash flow statement?

depreciation is a source of cash. because we charge depreciation in profit and loss but we added back in cash flow. remember one thing that capital expenditure= amount of depreciation


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Gradual wear on capital goods?

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Which of the following provisions of the Internal Revenue Code can be used to reduce the amount of the income tax expense arising from capital investment projects?

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