Which of the Following Is True of Depreciation

question 48

Multiple Choice

Which of the following is true of depreciation?

• A)It is recorded so that net book value represents fair value of assets.
• B)It does not affect the amount of cash realized from operations as it is a noncash flow.
• C)It is added back to net income to calculate cash from operations under the direct method.
• D)It represents a fund from which to purchase future assets.

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Definitions:

Noam Chomsky

An American linguist, philosopher, cognitive scientist, and political activist known for his theory of generative grammar and critique of behaviorism.

Strange Situation

A psychological experiment developed by Mary Ainsworth to assess attachment styles in young children by observing their reactions to separations and reunions with their caregivers.

Mary Ainsworth

An American-Canadian developmental psychologist known for her work in early emotional attachment with "The Strange Situation" assessment.

Attachment

An emotional bond that forms between individuals, typically between a child and caregiver, which influences behavior from infancy to adulthood.