Ignoring income tax effects, which of the following is correct concerning depreciation?
a. Depreciation provides additional cash flow from operating activities than would have been available without the depreciation.
b. Depreciation builds a cash reserve to fund the replacement of plant, property, and equipment.
c. Depreciation reduces net income but does not usually require a cash expenditure during the period.
d. Depreciation is a systematic and rational method for allocating the cost of intangible assets over their useful lives.
e. Depreciation provides less cash flow from operating activities than would have been available without the depreciation.
C
You might also like to view...
________, a pretrial litigation process, serves several functions, including preventing surprises, allowing parties to prepare thoroughly for trial, preserving evidence, saving court time, and promoting the settlement of cases
A) Pretrial motions B) Discovery C) Pleadings D) Settlement conference
Training programs to enhance leadership skills:
A) are used mostly for department supervisors B) are widely used for managers in organizations C) are used mostly for top executives in large organizations D) are seldom used for effective managers