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:

Class Intervals

The range of values within which a data point in a frequency distribution falls, often represented in grouped data.

Total Frequency

The sum of all counts or occurrences of a particular event or characteristic in a dataset.

Horizontal Axis

The x-axis in a graph, usually representing the independent variable or the categories being compared.

X-axis

The horizontal line on a graph or chart, typically representing the range of values for an independent variable.