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

Understand the concept and impact of decision traps and how to avoid them.

Differentiate between programmed and nonprogramed decisions and how they are approached.

Understand the different types of volcanic eruptions and their formations.

Identify common features and hazards associated with calderas.

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Definitions:

Depression

A mood disorder characterized by persistent feelings of sadness, loss, or anger that interfere with everyday activities.

Incurable

Refers to a disease or condition that cannot be cured or adequately treated.

Mentally Healthy

A state of wellbeing in which an individual realizes their own abilities, can cope with the normal stresses of life, work productively, and contribute to their community.

Social Causation

The theory that societal factors such as poverty, inequality, and social disorganization contribute to the development of mental health issues and other social problems.