With Respect to the Relationship Between Depreciation and Cash, Which

question 133

Multiple Choice

With respect to the relationship between depreciation and cash, which one of the following statements is incorrect?

• A) Accumulated depreciation is the total amount of the original cost of an asset already written off to expense in prior periods.
• B) Depreciation does not generate cash.
• C) Depreciation is an allocation of the original cost of an asset to the periods in which the asset is used.
• D) Charging depreciation expense provides a means of setting aside cash for the replacement of an asset.

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Definitions:

Stigmas

Characteristics of individuals that are considered socially unacceptable (e.g., being overweight, mentally ill, sick, poor, or physically scarred).

Socially Unacceptable

Behaviors or practices that are contrary to the norms or values of a society or community.

Overweight

A condition characterized by having more body fat than is optimally healthy, often measured in terms of body mass index (BMI).

Prejudice

A preconceived opinion that is not based on reason or actual experience.