Depreciation Is a Source of Cash Inflow Because

question 76

Multiple Choice

Depreciation is a source of cash inflow because

• A) it is a non-cash expense, so it needs to be added back to net income when using the indirect method.
• B) it supplies cash for future asset purchases.
• C) it is a tax-deductible cash expense.
• D) it is a taxable expense.

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Definitions:

Medicare

A federal health insurance program in the United States for people aged 65 and older, and for some younger individuals with disabilities.

Filing Equipment

Devices or storage solutions used for organizing and securing documents or files.

Shelves

Flat horizontal surfaces made of various materials, used for holding or displaying items in a organized manner.

Color-coding

The use of colors to identify, classify, or organize items or information in an intuitive and visual manner.