Why Is Depreciation Expense Added to Net Income When Reconciling

question 126

Multiple Choice

Why is depreciation expense added to net income when reconciling net income to net cash provided by operating activities?

• A)Because depreciation expense represents a cash inflow
• B)Because depreciation expense is a tax deduction that reduces the payment of taxes
• C)Because depreciation expense conserves cash outflows for taxes
• D)Because depreciation expense reduces net income but it has no effect on cash,so we add depreciation expense to net income to cancel the deduction

Recognize how price discrimination affects consumer prices based on demand elasticity.

Distinguish between necessary and unnecessary conditions for effective price discrimination.

Analyze the relationship between price discrimination and firm's revenue and output.

Comprehend the broader economic implications of profit maximization and entrepreneurial activity.

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Definitions:

Phenotype

The observable physical or physiological traits of an organism, resulting from the interaction of its genotype with the environment.

Genome

The complete set of genes or genetic material present in a cell or organism, representing all the inheritable traits.

Astigmatism

A common vision condition caused by an irregularly shaped cornea or lens, leading to blurred or distorted vision.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, contributing to the eye's ability to focus.