Which of the Following Statements About Depreciation Is Correct

question 46

Multiple Choice

Which of the following statements about depreciation is correct

• A) Each year the accountant adds an amount for depreciation when calculating the company's profit.
• B) The annual depreciation charge measures the cash that the company has spent on maintaining and renewing its plant and equipment.
• C) To calculate the cash produced by the business, it is necessary to deduct the depreciation charge from accounting profits.
• D) To calculate the cash produced by the business, it is necessary to add the depreciation charge back to accounting profits.

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Definitions:

Aggregate Planning

The process of developing, analyzing, and maintaining a preliminary, approximate schedule of the overall operations of an organization.

Yield Management

A strategy used in various industries to adjust prices and inventory in response to anticipated demand levels to maximize revenue.

Primary Management Challenge

The foremost issue or difficulty faced by managers in ensuring the effective and efficient operation of an organization.

Mixed Strategies

A game theory strategy that involves making randomized decisions to achieve optimal outcomes.