Depreciation Is Added to Net Income to Calculate Cash Flow

question 32

Multiple Choice

Depreciation is added to net income to calculate cash flow because:

• A) depreciation is not a continuing expense.
• B) all other expenses are operating expenses while depreciation is a financing expense.
• C) depreciation is usually the largest expense for a company.
• D) depreciation is a non-cash expense.
• E) the amount of depreciation is the result of the accounting method used.

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Definitions:

Classical Conditioning

An educational process that unfolds by linking an external stimulus with a naturally happening stimulus, which results in a conditioned response.

Classical Conditioning

is a learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Classical Conditioning

A method of learning that involves forming connections between stimuli in the environment and those that occur naturally.

Modify Behavior

The process of changing or adjusting one's actions, reactions, or habits, often through various forms of learning or intervention.