Which of the Following Statements Is Considered Incorrect

question 79

Multiple Choice

Which of the following statements is considered incorrect?

• A)Depreciation methods provide a systematic way to expense the cost of an asset,although this expense is not a negative cash flow.
• B)Depreciation is an allocation of the original cost of an asset to the periods in which the asset is used.
• C)Accumulated depreciation is the summation of the amount of the original cost of an asset already written off to expense in prior periods.
• D)Accumulated depreciation is not a pile of cash waiting to be used.
• E)Depreciation expense provides a means of setting aside cash for the replacement of an asset.

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Definitions:

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