Which Cash Flow Item Calculation Will Be Affected by Depreciation

question 83

Multiple Choice

Which cash flow item calculation will be affected by depreciation expense even though depreciation expense is not a cash flow item itself?

• A)initial investment.
• B)income taxes.
• C)salvage value.
• D)release of working capital.

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Definitions:

Stereotypes

Overgeneralized beliefs about a particular category of people.

Central Tendency Error

A bias in performance appraisals where the evaluator rates most employees as being average, overlooking individual differences in performance.

Leniency Error

A type of bias in performance appraisals where the evaluator tends to rate employees more favorably than their performance justifies.

Similar-To-Self Bias

The tendency of individuals to favor and be more positively inclined towards others who they perceive as similar to themselves.