Which of the Following Statements Is False

question 177

Multiple Choice

Which of the following statements is false?

• A) Depreciation expense is added to profit in the operating activities section of the statement of cash flows because it had no cash effect on profit under the indirect method.
• B) Depreciation expense is included in the investing activities section of the cash flow statement.
• C) The only cash effect for depreciation is the tax savings provided by its deduction to derive taxable income.
• D) Depreciation is a non-cash expense that reduces profit but involves no outflow of cash.

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Definitions:

Ounce Bags

Containers or small bags measuring or containing a specific quantity of a product, often labeled by weight in ounces.

Jelly Beans

Small bean-shaped sugar candies with soft candy shells and gel interiors, coming in various flavors and colors.

Cups

Units of measurement typically used in cooking to quantify volume, or small round containers used for drinking.

Liters

A unit of volume in the metric system, used to measure liquids and some solids.