Which One of the Following Statements Regarding the Effect of Depreciation

question 35

Multiple Choice

Which one of the following statements regarding the effect of depreciation when reconciling net income to net cash provided by operating activities is correct?

• A) Depreciation expense is added in the cash flow from operations section.
• B) Ignoring income tax effects, increasing depreciation expense will increase cash flows from operations.
• C) Depreciation expense is a source of cash.
• D) Depreciation expense is a cash outflow.

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Definitions:

Causal Attributions

The process of trying to determine the causes of specific events, especially regarding understanding behaviors and outcomes in social settings.

Task Difficulty

The perceived level of challenge presented by a task, which can influence motivation and performance.

Internal

Relating to or situated on the inside, often referring to processes or aspects within an organization or individual.

Negative Attributions

A cognitive process where individuals attribute negative motives or characteristics to others' behavior, leading to potentially biased perceptions.