Which of the Following Statements About Depreciation Is TRUE

question 89

Multiple Choice

Which of the following statements about depreciation is TRUE?

• A) The amortization method chosen does not affect cash inflows from operations.
• B) The amortization method chosen for taxes will not affect cash outflows.
• C) The total amount of amortization over the life of the assets differs with different amortization methods.
• D) Since amortization does not involve a cash expenditure, it can be ignored in capital-budgeting decisions.

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