Which of the Following Statements Best Describes the Reason Depreciation

question 113

Multiple Choice

Which of the following statements best describes the reason Depreciation Expense is added to net income when preparing the statement of cash flows?

• A)Depreciation expense originally reduced net income,but it actually represents a cash inflow for the company.
• B)Depreciation expense originally reduced net income,but the expense does not involve paying cash.
• C)Depreciation expense originally reduced net income,but it actually represents a cash outflow for the company.
• D)Depreciation expense is not included in net income and,so,its cash effect must be accounted for separately.

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Definitions:

Leadership Success

Refers to the effectiveness and positive outcomes attained by individuals in leadership positions within organizations.

Position Power

The authority and influence a person holds in an organization based on their job or position.

Reward And Punish

Techniques used in managing behavior by offering incentives for desired actions and penalties for undesirable ones.

Situational Control

Refers to the ability to influence the outcome of specific situations by effectively managing variables and adapting strategies.