Which of the Following Statements About Depreciation Is FALSE

question 110

Multiple Choice

Which of the following statements about depreciation is FALSE?

• A) Depreciation does not generate cash.
• B) Depreciation is an allocation of the original cost of an asset to the periods in which the asset is used.
• C) Depreciation does not entail an outflow of cash.
• D) Depreciation is a means of setting aside cash for the replacement of an asset.

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Definitions:

Agency Shop Provision

A provision that requires employees to pay union dues or fees even if they choose not to join the union, as a condition of their employment.

Representation Elections

A voting process in which employees decide whether or not they want to be represented by a union in their workplace.

Unfair Labor Practices

Actions by employers or labor unions that violate the rights of employees or the regulations governing labor relations, leading to potential legal consequences.

National Labor Relations Act

A foundational statute in United States labor law that guarantees workers the right to form unions, engage in collective bargaining, and take collective action such as strikes.