Depreciation Is Usually NOT Considered an Operating Cash Flow in Capital

question 135

Multiple Choice

Depreciation is usually NOT considered an operating cash flow in capital budgeting because ________.

• A) depreciation is usually a constant amount each year over the life of the capital investment
• B) deducting depreciation from operating cash flows would be counting the lump-sum amount twice
• C) depreciation usually does not result in an increase in working capital
• D) depreciation usually has no effect on the disposal price of the machine

---

Definitions:

Ischium

One of the three bones that make up the pelvis, positioned lower and to the back, anchoring sitting muscles.

Levator Ani

A group of muscles situated in the pelvis that support the pelvic organs and assist in maintaining continence.

Pubococcygeus

A muscle of the pelvic floor that stretches from the pubic bone to the coccyx and is important for pelvic floor health and function.

Iliococcygeus

A muscle part of the pelvic floor that helps support the organs located in the pelvis.