Why Is Depreciation Added to Net Income to Determine Cash

question 31

Multiple Choice

Why is depreciation added to net income to determine cash flow from operations?

• A) To compensate for financial risk.
• B) Depreciation is an expense but not a cash outflow.
• C) It is standard procedure when capital budgeting for a multinational corporation.
• D) Net income is understated due to excessive depreciation.

---

Definitions:

Brain Ablation

A medical procedure that involves removing or destroying tissue in the brain to treat neurological or psychological conditions.

DBS

Deep Brain Stimulation, a surgical treatment involving the implantation of a medical device that sends electrical impulses to specific targets in the brain to treat neurological disorders.

rTMS

Repetitive Transcranial Magnetic Stimulation, a non-invasive procedure that uses magnetic fields to stimulate nerve cells in the brain, often used in treating depression.

Period Of Stimulation

The duration during which a specific physiological or psychological process is activated or increased.