If a Firm's Depreciation Expense Doubles in a Period Which

question 87

Multiple Choice

If a firm's depreciation expense doubles in a period which of the following will increase as a result of this event? Net profit Cash flow

• A) YesYes
• B) YesNo
• C) No Yes
• D) No No

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Definitions:

Accounting Measurements

The process of quantifying financial information in dollars or units to report financial position and performance.

Revenue Recognition

The accounting principle that deals with the conditions under which revenue is recognized and recorded on the financial statements.

Installment Method

An accounting method used to recognize revenue and expenses on long-term contracts and other sales where payment is received in installments.

Qualitative Characteristic

Features or attributes that describe the non-numeric aspects of goods, services, processes or information, often related to quality.